US, Japan strike joint deal to prop up yen

The yen surged as much as 1.4% after Japan's Finance Ministry and US officials confirmed the intervention.

The US and Japan on Monday launched their first coordinated yen-buying intervention since 2011, helping lift the Japanese currency as much as 1.4% after it touched a four-decade low.

The coordinated action pushed the yen up by as much as 1.4%, with South Korea also reportedly involved. Trump said the intervention was intended to support a close ally, while a stronger yen could also ease pressure on US Treasury markets and reduce trade concerns linked to Japan’s weak currency.

Officials said the coordinated effort was intended to counter excessive currency volatility and reduce risks to global financial markets, including potential pressure on US Treasury yields if Japan were forced to sell government bond holdings to fund unilateral intervention.

The move comes as Japan battles imported inflation fueled by the weak yen, with the Bank of Japan signaling a possible near-term interest rate hike.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

The US and Japan on Monday launched their first coordinated yen-buying intervention since 2011, helping lift the Japanese currency as much as 1.4% after it touched a four-decade low.

The move comes as Japan battles imported inflation fueled by the weak yen, with the Bank of Japan signaling a possible near-term interest rate hike.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.