Japan and the United States are prepared to execute another round of coordinated foreign exchange intervention should the yen resume its downward trajectory, according to a former Bank of Japan official with direct experience in Tokyo’s market operations.
Atsushi Takeuchi stated that joint action would be taken "certainly" if the currency shows signs of resuming its slide.
His comments reinforce the aggressive stance recently adopted by policymakers in both Washington and Tokyo to curb disorderly market movements.
The warning comes as the yen approaches its weakest level in four decades, prompting heightened vigilance from global central banks. U.S. Treasury Secretary Scott Bessent has previously indicated that Washington is ready to repeat recent coordinated efforts with Japan to stabilize the currency.
Similarly, Japanese Finance Minister Satsuki Katayama has signaled that Tokyo is prepared to take decisive action in the foreign exchange markets, serving as a clear deterrent to speculative selling.
Traders are now assessing whether these verbal interventions will be sufficient to halt the yen’s depreciation or if actual market operations are imminent.