Japan's Ministry of Finance confirmed on Monday that it conducted a coordinated yen-buying operation with the U.S. Treasury last Friday, a rare joint effort between the two allies aimed at curbing sharp yen volatility.
Tokyo signaled its readiness to intervene again when necessary, stating it "will not hesitate to conduct further coordinated intervention operations in the future," while maintaining close communication with the U.S. Treasury. Finance Minister Kazuyuki Satsuki also emphasized that Japan is "continuously monitoring currency conditions and maintaining close communication with counterparts at the U.S. Treasury."
The yen hit 163.73 against the U.S. dollar on Thursday before recovering to 157.57 on Friday. On Monday, the yen was trading near 157.70 against the dollar. The yen's persistent weakness has become an increasing concern for the Japanese government, with the currency recently falling to roughly 40-year lows against the dollar.
According to the Finance Ministry, the intervention was conducted under the Japan-U.S. Joint Finance Ministers' Statement issued in September 2025, targeting "excessive volatility and disorderly movements in the yen seen recently." Japan also announced plans to use the Federal Reserve's Foreign and International Monetary Authorities (FIMA) Repo Facility in the future, which allows eligible foreign central banks and monetary authorities to obtain short-term U.S. dollar funding by temporarily pledging U.S. Treasury securities.
U.S. Treasury Secretary Scott Bessent confirmed the coordinated action in a statement, saying: "The coordinated foreign exchange operation on Friday was aimed at curbing disorderly yen movements."
"The Treasury continues to monitor currency developments and maintains close communication with our counterparts at Japan's Ministry of Finance and the Bank of Japan. We will not hesitate to participate in future joint interventions," Bessent stated.
Bessent also expressed support for Japan's overall policy direction, noting the U.S. "strongly supports Japan's decisive market and monetary policy measures to correct the significant undervaluation of the yen."
President Donald Trump earlier said the U.S. participation in last week's coordinated intervention to support the yen was both a signal of support for Japan and beneficial for global economic stability. "Japan asked for some assistance, and we will always lend a helping hand to Japan," Trump told reporters on Air Force One on Sunday. He noted the strong alliance between the two countries, adding, "At the end of the day, this is first and foremost a gesture of goodwill."
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