United States and Japan Conduct Joint Intervention to Support Yen
5 sources across 4 countries · Brazil · Germany · India · United Kingdom
Who reported this
- G1
- CNN Brasil
- Frankfurter Allgemeine
- The Indian Express
- Reuters
What the colours mean
- Left
- Centre-left
- Centre
- Centre-right
- Right
- A hatched block means the outlet is affiliated with, or controlled by, a state.
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The United States and Japan conducted a joint coordinated intervention in the currency market on Friday to support the Japanese yen, which had fallen to its lowest levels in 40 years. This marks the first such coordinated action between the two nations since 2011. President Donald Trump confirmed the move on Sunday, describing the support for the yen as a sign of friendship and a contribution to global economic stability. Japanese Finance Minister Satsuki Katayama stated that the operation aimed to combat excessive volatility and disordered movements of the currency. Following the announcement, the yen rose by approximately 1 percent to trade around 155.20 per dollar.
Reports indicate that the Federal Reserve Bank of New York sold euros to buy yen on behalf of the U.S. Treasury. While exact figures vary by source, some data suggests Japan may have spent up to 36.58 billion dollars, while other reports cite the sale of up to 59 billion dollars in securities. U.S. Treasury Secretary Scott Bessent indicated that the U.S. would not hesitate to participate in further joint interventions to correct the substantial undervaluation of the yen.
Analysts suggest several motivations for the U.S. involvement. Some argue that a stronger yen prevents the Japanese government from selling U.S. Treasuries, which would otherwise drive up U.S. bond yields. Others suggest that a weaker yen makes Japanese exports more competitive, which could mitigate the impact of tariffs imposed by the Trump administration. For Japan, a weak yen increases the cost of importing energy and food, which fuels domestic inflation.
Outlets with different political leanings framed the motivations differently. Center leaning sources emphasized the geopolitical friendship and the general stability of the global economy. Center left sources highlighted how the move helps Washington manage the effects of its own tariffs by reducing the competitiveness of Japanese goods. Center right sources focused on the negative impact of the currency collapse on the Japanese middle class.
How each side framed it
- Centre-left
- Highlighted the strategic benefit to the U.S. in offsetting the competitive advantage Japanese exporters gain from a weak yen under U.S. tariffs.
- Centre
- Framed the intervention as a gesture of friendship and a tool for global economic stability.
- Centre-right
- Focused on the domestic economic hardship and the impact of the currency's decline on the Japanese middle class.
Sources
- Centre CNN Brasil: USA buys Japanese yen for the first time in more than a decade
- Centre-right Frankfurter Allgemeine: Currency collapse: How could Japan's currency sink so low?
- Centre-left G1: Japan and USA buy yen to contain fall of Japanese currency
- Centre Reuters: US shakes up currency markets with talk of unusual yen-buying via selling euros - Reuters
- Centre Reuters: Breakingviews - US-Japan yen team-up worsens BOJ dilemma - Reuters
- Centre The Indian Express: After US-Japan intervention, how a stronger yen might affect Indian markets
88% of the statements in this article were traced back to the source articles listed above.