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Yen rebounds after Tokyo and Washington joint intervention

The yen strengthened to 155.23 per US dollar, and analysts linked the US role to potentially easing selling pressure on US Treasuries.

Reported · Written up by our desk · Central Banks

The Japanese yen surged after a rare joint intervention by Tokyo and Washington, reversing days of weakness that had pushed it to a 40-year low, according to data cited by SCMP Economy from Wind.

By Monday morning, the yen rose as high as 155.23 per US dollar, its strongest level since early May. SCMP Economy also notes that the intervention followed comments from US President Donald Trump, who described the move as “a signal of friendship,” and from Bessent, who said the US would not hesitate to join further joint intervention if needed.

SCMP Economy said the first coordinated yen buying since 1998 has raised questions about what comes next and how it could affect markets in mainland China and Hong Kong.

A chief analyst at China Securities, Qian Wei, said Japan’s decision was likely tied to taking advantage of a favorable window, while the US involvement may be aimed at limiting selling pressure on US Treasuries, according to SCMP Economy.

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