Japan and the U.S. signal potential currency intervention as the yen weakens to its lowest level in four decades.
The Japanese yen fell to a 40-year low against the USD, heightening speculation of government intervention. Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent reaffirmed a shared stance on possible bold action in foreign exchange markets.
The yen’s decline surpasses levels last seen in 1984, driven by diverging monetary policies between the Bank of Japan and the U.S. Federal Reserve. Analysts note that prior interventions in 2022 and 2024 occurred when the yen neared 150-155 per USD.
Markets remain on alert for official statements or direct market moves, though no immediate action has been confirmed.