Japan and the US jointly intervened to support the yen, with officials signaling readiness for further action if needed.
The USD/JPY pair fell to near 156.45 in early European trading Monday as the yen strengthened following confirmed joint intervention by US and Japanese authorities. Finance Minister Satsuki Katayama stated both nations conducted coordinated yen-buying operations and would act again if necessary to curb the currency’s decline to 40-year lows.
Last week’s intervention marked a rare bilateral effort, with US Treasury Secretary Scott Bessent and President Donald Trump affirming Washington’s support. Goldman Sachs strategists noted further intervention is likely if the yen reverses recent gains, as seen in May.
Markets remain cautious amid geopolitical tensions, though the yen’s rebound reflects immediate policy impact. Analysts suggest intervention aims to stabilize the currency while awaiting fundamental improvements.