On Monday, Japan's Ministry of Finance officially confirmed: on Friday, Tokyo and Washington conducted a coordinated currency market intervention aimed at buying the yen.
This is a rare joint move by the two allies, designed to stop sharp fluctuations in the Japanese currency's exchange rate. The yen strengthened from 163.73 to 157.57 per dollar.
Japanese Finance Minister Satsuki Katayama emphasized that the country remains in close contact with the US Treasury and "will not hesitate to conduct further coordinated interventions in the future."
The ministry referred to the joint statement by the finance ministers of Japan and the US from September 2025. The intervention was carried out precisely in accordance with this document to combat "excessive volatility and disorderly movements of the yen."
US Treasury Secretary Scott Bessent also confirmed the actions. "Friday's coordinated currency market operations countered disorderly movements of the yen," he stated. The US Treasury, he added, "will not hesitate to participate in further joint interventions."
President Donald Trump called Washington's participation a gesture of support for Japan and a sign of friendship between the countries. "They asked for a little help, and we are always there for Japan," he told reporters.
What is behind the decision to sell euros rather than dollars to buy yen? This nuance has already raised questions among observers.
Analyst Robin Brooks from the Peterson Institute for International Economics noted that such an approach might ultimately weaken, rather than strengthen, confidence in the yen. Markets are now speculating why the US did not use dollars directly.
Japan also announced plans to use the Federal Reserve's foreign exchange swap arrangement for foreign monetary authorities (FIMA repo facility) in the future. This will allow for obtaining short-term dollars against US Treasury securities as collateral.
For now, the yen remains stable, but traders remain on alert. Both sides emphasize that they continue to closely monitor the situation and remain in communication.
