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Japan expected to coordinate with US to halt yen slide near 40-year lows
Market sources cited yen purchases by Japan and the US, the first joint intervention in 15 years, after the yen pushed import costs higher and stoked inflation concerns.
Japan is expected to announce on Monday that it took joint action with the United States to try to stop the yen's slide toward 40-year lows, signaling a rare bilateral effort that market participants hope could mark a turning point for the currency, according to Reuters.
The report says market sources pointed to yen purchases by Japanese and US authorities, described as the first joint intervention in 15 years, with Japan potentially selling as much as $58.97 billion to buy yen during intervention in New York on Thursday, followed by another suspected foray on Friday.
On Friday, the US Treasury told some banks it might also intervene in the yen market, a source said, and Reuters also reported Treasury Secretary Scott Bessent had urged buying Japanese yen on a handwritten to do list shown at a cabinet meeting.
Japan has been battling the yen's weakening impact on import prices and inflation, hurting household finances and Prime Minister Sanae Takaichi's approval ratings. The dollar ended Friday around 157.60 yen, down from near 164 yen earlier in the week, while the Bank of Japan on Friday offered its clearest signal yet for an early rate hike even as it kept policy steady.