Rare Coordinated Intervention by Japan and U.S.
Embracing a serious concern on extreme devaluation of Japanese yen, financial authorities in both governments of Japan and the United States made coordinated intervention in currency market. Both governments announced on August 3 rd that they made intervention of purchasing Japanese yen, causing steep rise of yen’s value in foreign exchange. It is still unclear whether this urgent action will bring stability in a string of yen’s depreciation. Minister of Finance, Satsuki Katayama, issued a statement that announced coordinated intervention by Japanese Ministry of Finance and U.S. Department of Treasury of purchasing Japanese yen on July 31 st in EST of the U.S. “This joint action was taken pursuant to the U.S.-Japan Finance Ministers’ Joint Statement issued in September 2025 and countered excessive volatility and disorderly movements in the Japanese yen in recent months,” said Katayama in the statement. The statement stressed that both governments would not...