Japan and US confirm first joint currency intervention since 2011

Japan and the United States have officially confirmed a joint foreign exchange market intervention to stabilize the Japanese yen, marking their first coordinated action since 2011.

The operation follows the yen dropping to a 40-year low of nearly 164 per US dollar, driven by stark interest rate differentials and rising global energy import costs. Coordinated dollar sales and yen purchases helped the currency recover to approximately 157 yen per dollar. Japanese Finance Minister Satsuki Katayama stated that the coordinated actions aimed to address excessive market volatility.

Financial analysts noted that Washington participated partly to contain global spillovers, as a continued sell-off of the yen and Japanese government bonds risked applying upward pressure on US Treasury yields. Despite the immediate rebound, market observers caution that long-term currency stability will depend on underlying monetary policy adjustments.

Sources: Der Standard, FAZ, Finews, Respect, Seznam Zprávy.