Japan and the United States have confirmed they conducted a coordinated foreign exchange intervention to support the Japanese yen, with authorities warning they will not hesitate to take further action if necessary.
The announcement marks a significant escalation in efforts to stabilize the currency, which has faced extraordinary weakness amid global market volatility and shifting trade dynamics.
The joint statement from Japan's finance ministry underscores a rare alignment between Washington and Tokyo on currency policy.
While Japan has historically managed its own exchange rate fluctuations, the involvement of the US Treasury signals a shared concern over the yen's depreciation.
Analysts note that the intervention aims to address the currency's slide, which has offset some of the economic benefits from recent tariff adjustments.
This coordinated action follows a massive solo intervention by Japanese authorities in New York markets earlier this week, where Tokyo bought yen and sold dollars to stem the decline.