Japan and the US spent $34 billion in coordinated currency intervention last week, signaling readiness for further action to support the Yen.
The USD/JPY pair fell to around 157.40 in early Asian trading on Tuesday as the Japanese Yen strengthened following rare joint intervention by Japan and the US. Tokyo and Washington confirmed coordinated Yen-buying efforts last week, with Japan deploying approximately $34 billion to stabilize its currency.
Japan’s Finance Ministry indicated no hesitation in taking further steps, while US officials, including Treasury Secretary Scott Bessent, echoed support for additional market intervention. The move follows a prior day’s actions, marking a significant shift in policy coordination.
Traders are now eyeing Friday’s US July jobs data for clues on Federal Reserve rate cuts, with Nonfarm Payrolls expected to rise by 83,000 and unemployment projected at 4.3%.