Japan and United States launch joint currency intervention to support yen

Japan and the United States have executed a rare joint currency intervention to curb the severe depreciation of the Japanese yen, which recently fell to a 40-year low of almost 164 yen per US dollar. Japanese Finance Minister Satsuki Katayama confirmed the coordinated operation involving the purchase of yen and sale of dollars, stating the action aimed to address "excessive volatility and disorderly movements."

The sustained weakness of the currency has raised import costs for energy and foodstuffs in Japan, intensifying inflationary pressures on households. Analysts attribute the decline primarily to the widening interest rate differential between Washington and Tokyo, alongside elevated global oil prices.

Although the joint market action prompted an immediate rebound in the yen's value, financial observers caution that its long-term efficacy remains uncertain without broader adjustments to underlying monetary policies.

Sources: Expresso das Ilhas, FAZ, NOS, ORF, Seznam Zprávy.