Japan and the United States have confirmed they jointly intervened in foreign exchange markets last week after the yen fell to a 40-year low against the US dollar.
Japan’s Ministry of Finance said the intervention was intended to counter excessive volatility, while US Treasury Secretary Scott Bessent said the coordinated action addressed disorderly market movements. Both governments indicated they are prepared to intervene again if necessary.
Key developments:
- Bank of Japan data suggests Japan may have sold almost US$59 billion to purchase yen.
- The intervention followed the yen’s decline to around 164 per US dollar, before recovering.
- US President Donald Trump said Washington supported Japan’s efforts to strengthen its currency.
The coordinated measures aim to stabilise financial markets and reduce the risk of wider economic disruption linked to sharp currency fluctuations.
ℹ️ BBC News
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