Reuters reports that Japan is expected to announce on Monday that it coordinated with the US Treasury to intervene in foreign exchange markets, after the yen weakened to a 40-year low. The joint intervention, in which yen were purchased, follows estimated Japanese spending of nearly $59 billion in prior attempts to stem the currency's decline. The move aims to stabilize the yen and signal tight coordination between Tokyo and Washington.
Japan is expected to announce on Monday that it coordinated with the U.S. Treasury to intervene in foreign exchange markets to support the yen, which has weakened to a 40-year low, according to a Reuters report cited by the Israeli outlet Abu Ali Express. The joint intervention, in which yen were purchased, follows estimated Japanese spending of nearly $59 billion in earlier attempts to stem the currency's decline. The move aims to stabilize the yen and signal tight coordination between Tokyo and Washington.
On Saturday, Aug 1, The Zioneer reported that a note visible on U.S. Treasury Secretary Scott Bessent's desk during a press appearance read "Buy Japanese Yen (JPY) $5-10 bil." That same day, the Financial Times reported that the U.S. Treasury had already intervened to support the yen after Japan's own intervention — a rare direct U.S. forex move. The desk note was the third such forex intervention contemplated by the Treasury under President Trump, following previous actions in Argentina and the UAE.
As The Zioneer reported on Aug 1, the U.S. Treasury intervention marked a rare direct U.S. forex market operation, underscoring the close economic alignment between the two allies. The expected announcement formalizes what was already signaled by the note and the subsequent intervention.
The announcement is expected but has not yet been made as of Sunday morning. The specific size and timing of the joint intervention remain unconfirmed, and it is not yet clear whether the operation will be a one-time move or part of a broader strategy.
4 developments
- DevelopingJapan begins steps to establish central intelligence agency, first since WWII — NYT
- DevelopingJapan signals readiness to join European sanctions relief on Iran
- DevelopingBank of Israel Confirms May Foreign Exchange Intervention
- DevelopingFinance Ministry drafts aid program amid dollar collapse
Source and signal
- Open-source intake