Joint intervention by US and Japanese authorities targets excessive forex volatility, briefly strengthening JPY against USD.
US Treasury Secretary Scott Bessent confirmed coordinated action with Japan to address excessive currency market volatility. The move follows high-level talks reaffirming economic ties and robust communication between the two nations on forex stability.
USD/JPY initially fell to near 156.70 after the announcement but recovered most losses, trading around 157.45. The pair had reached an intraday high of 157.75 earlier. The Japanese Yen showed strength against major currencies, particularly the Australian Dollar.
Markets reacted swiftly to the news, though the impact on USD/JPY was short-lived as the pair stabilized near pre-announcement levels.