U.S. and Japan Carry Out Joint Operation to Buy Yen

Overview

• The two governments confirmed a coordinated yen‑buying operation that took place on Friday to counter disorderly currency moves after the yen fell to four‑decade lows near ¥164 per dollar.
• President Donald Trump called the intervention a “gesture of friendship” and said the U.S. would gain financially, while Treasury Secretary Scott Bessent said Washington “firmly supports” Tokyo and would not hesitate to join future joint actions.
• Analysts cited by multiple outlets estimate the operation at roughly $37.5 billion to $52.8 billion, and some reports say the New York Fed sold euros to buy yen for the U.S. Treasury, though specific operational details have not been fully disclosed.
• The yen’s slide was driven by a wide gap between U.S. and Japanese interest rates and market concern about Japan’s fiscal plans, a dynamic that boosts exporters but raises import and energy costs and adds inflationary pressure for Japanese households.
• Markets and economists say the intervention can steady the currency in the short term but that a durable reversal will depend on Bank of Japan policy moves and how Tokyo addresses fiscal pressures; past joint actions have limited long‑run effect without such fundamental shifts.