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Yen rises to three-month high after joint US-Japan intervention
The yen strengthened to ¥155 per dollar on Monday after Washington and Tokyo confirmed coordinated yen buying, with Japan’s finance ministry saying it would not hesitate to act again.
Japan’s yen rose to a three-month high after the US and Japanese governments confirmed they carried out a rare joint currency intervention late last week, in coordinated yen buying aimed at supporting the Japanese currency. On Monday, the yen strengthened to ¥155 per US dollar, its highest level since early May.
Tokyo’s finance ministry said the two governments conducted the intervention together and would not hesitate to take further action. The move follows the yen’s earlier slide, after it had weakened to nearly ¥164 per dollar last week.
The intervention came amid broader pressure tied to interest-rate differentials between Japan and other advanced economies, which helped fuel carry trades that borrow in yen and invest in higher-yielding dollar assets. The yen has also been pressured by investor concerns around Japan’s prime minister Sanae Takaichi, including her push for tax and spending stimulus and her criticism of the Bank of Japan setting higher interest rates.
US Treasury Secretary Scott Bessent said Washington “will not hesitate to participate in further joint intervention,” and reiterated calls for additional Japanese rate increases. According to Bank of Japan data cited by Reuters, Japan spent up to $36.58 billion last Friday to buy yen, and a notebook photo showed his “to do” list included buying $5 billion to $10 billion worth of yen. Reuters reported this was the first collaboration since March 2011. Oxford Economics said the coordinated intervention would not be enough to reverse the trend of yen weakness.