US Signals More Joint Yen Intervention With Japan if Currency Volatility Continues

The United States is prepared to join additional coordinated foreign exchange intervention with Japan if excessive volatility in the yen continues, U.S. Treasury Secretary Scott Bessent said on Sunday, reinforcing Washington's support for stabilizing currency markets.

In a post on X, Bessent said the joint U.S.-Japan intervention conducted on Friday successfully addressed what he described as "disorderly yen movements." He added that the U.S. Treasury remains in close coordination with Japan's Ministry of Finance (MOF) and the Bank of Japan (BOJ).

"We will not hesitate to participate in further joint intervention," Bessent wrote. He also backed expanding the Federal Reserve's Foreign and International Monetary Authorities (FIMA) Repo Facility, describing it as a key liquidity safeguard for global financial markets.

Japan recently confirmed that Friday's operation marked the first coordinated yen-buying intervention with the United States since 2011. The move followed the Japanese currency's sharp decline to a 40-year low against the U.S. dollar, raising concerns over excessive market volatility.

The intervention triggered a strong recovery in the yen. Japan's currency gained more than 2% on Thursday and extended its advance on Friday, strengthening to below the 158-per-dollar level ahead of the BOJ's latest monetary policy decision. By early Monday trading, the USD/JPY pair stood at 157.71 after falling nearly 4% over the previous week.

The Bank of Japan left its benchmark short-term interest rate unchanged at 1% on Friday but indicated it remains open to further rate hikes if underlying inflation continues to strengthen, signaling a gradual path toward tighter monetary policy.

President Donald Trump also welcomed the coordinated action, calling it an example of close economic cooperation between the two allies.

"They wanted a little bit of help, and we're always there for Japan," Trump told reporters aboard Air Force One on Sunday.

Bessent further praised Japan's recent currency and monetary policy measures, arguing they address the yen's significant undervaluation. He added that Prime Minister Sanae Takaichi's administration is entering "an exciting new phase of Abenomics," highlighting Washington's confidence in Japan's evolving economic strategy.