Tokyo and Washington confirmed their first coordinated currency support since 2011, selling dollars to halt the yen’s 40-year decline.
Japan and the United States intervened jointly in currency markets for the first time since 2011, selling nearly $60 billion to bolster the yen after it hit 40-year lows. The move followed delays in a Bank of Japan rate hike due to recent seismic activity and anticipation of a Federal Reserve rate increase next month.
The intervention included U.S. plans to spend between $5 billion and $10 billion, according to market sources. Both governments pledged to repeat the action if necessary, signaling ongoing support for the yen amid persistent downward pressure.
The intervention has sparked concerns over potential liquidation of U.S. Treasuries by Japan, the largest foreign holder, which may contribute to rising U.S. bond yields.