TOKYO, Japan — The United States and Japan confirmed Monday that they carried out a coordinated intervention in foreign exchange markets last week to support the Japanese yen after sharp currency volatility raised concerns about financial stability. Officials from both governments said the action was intended to address disorderly market movements and indicated they are prepared to intervene again if similar conditions emerge.

The rare joint operation highlights growing cooperation between Washington and Tokyo as Japan seeks to stabilize its currency, which recently fell to its weakest level against the U.S. dollar in decades.

Japan Confirms Coordinated Market Intervention

Japan’s Ministry of Finance said the joint yen-buying operation took place on Friday in coordination with the U.S. Treasury.

According to the ministry, the intervention was conducted under the framework of the September 2025 Joint Statement of the Japanese and U.S. Finance Ministers. Officials said the objective was to respond to “recent excessive volatility and disorderly movements of the yen.”

Finance Minister Satsuki Katayama said Japan remains in close communication with U.S. officials regarding foreign exchange markets.

“We will not hesitate to conduct further coordinated interventions in the future,” the ministry said in its statement.

The ministry also announced plans to make use of the Federal Reserve’s Foreign and International Monetary Authorities (FIMA) Repo Facility, which allows approved foreign central banks to temporarily exchange U.S. Treasury securities for short-term U.S. dollar liquidity.

U.S. Treasury Supports Japan’s Currency Efforts

U.S. Treasury Secretary Scott Bessent confirmed the coordinated intervention and said both countries acted to reduce disruptive currency fluctuations.

“Friday’s coordinated foreign exchange actions countered disorderly yen movements,” Bessent said.

He added that the Treasury remains in regular contact with Japan’s Ministry of Finance and the Bank of Japan.

“We will not hesitate to participate in further joint intervention.”

Bessent also expressed support for Japan’s broader monetary and market policies aimed at addressing what he described as the yen’s significant undervaluation.

Yen Recovers After Sharp Decline

The intervention followed a period of substantial weakness in Japan’s currency.

The yen traded as low as 163.73 per U.S. dollar last Thursday before strengthening to approximately 157.57 following Friday’s intervention. It remained near 157.70 per dollar during Monday trading.

Japan has grown increasingly concerned over the yen’s prolonged depreciation, which raises import costs and contributes to inflation by making energy, food, and other imported goods more expensive.

Trump Describes Intervention as Support for Japan

President Donald Trump also confirmed U.S. participation during remarks aboard Air Force One on Sunday.

According to Trump, the intervention reflected the close economic relationship between the two allies.

“They wanted a little bit of help, and we’re always there for Japan,” Trump said.

He added that the action served as “a signal of friendship” while supporting global financial stability.

Economists Debate Long-Term Effectiveness

Some analysts questioned whether the coordinated intervention will have lasting effects on currency markets.

Robin Brooks, Senior Fellow in Economic Studies at the Brookings Institution, suggested that reports indicating the United States may have sold euros rather than dollars to purchase yen could weaken the intervention’s credibility.

Brooks said investors may question why dollar reserves were not used if strengthening the yen was the primary objective.

He argued that such market perceptions could reduce confidence in future coordinated interventions.

No U.S. officials have publicly confirmed the specific currencies used during the operation beyond acknowledging the coordinated market action.

Why the Intervention Matters

Foreign exchange interventions are relatively uncommon and typically occur only when governments believe currency movements threaten financial stability.

The coordinated action demonstrates continued economic cooperation between the United States and Japan while signaling that both governments are prepared to respond if currency volatility intensifies.

Market participants will continue monitoring statements from the U.S. Treasury, Japan’s Ministry of Finance, and the Bank of Japan for indications of additional intervention.

Key Takeaways

• The U.S. and Japan confirmed a coordinated yen-buying intervention.
• Officials said the action targeted excessive currency volatility.
• Japan indicated additional intervention remains possible.
• The U.S. Treasury pledged continued coordination with Japanese authorities.
• Analysts remain divided on whether the intervention will produce lasting market effects.