Japan, US intervene to prop up yen after 40-year low

Japan’s finance ministry said it conducted a coordinated yen-buying intervention with the U.S. Treasury on Friday.2 The yen strengthened to ¥155 to the US dollar on Monday, its highest level since early May.5 US President Donald Trump said helping to bolster the Japanese currency is a sign of friendship.1

The joint action followed a September 2025 finance ministers' statement, according to the Times of India.3 Japan also plans to use the Federal Reserve's FIMA Repo Facility as part of the intervention effort.3 The U.S. Treasury Department and Federal Reserve joined forces with Japan’s Ministry of Finance to stage the intervention, the ministry confirmed in a statement on Monday.7

The intervention marked the first time the U.S. and Japan jointly bought yen in nearly three decades.8 The yen had dropped to a 40-year low before the coordinated move, according to Bloomberg.6 Japan’s finance minister said Tokyo is ready for further intervention if the yen continues to swing.3

The U.S. dollar weakened sharply against the Japanese yen after the market interventions were confirmed.4 The yen surged as high as 155.23 per US dollar on Monday morning after the joint action, according to Wind data.6 The intervention was described as a rare coordinated operation by Japan and the United States to address yen volatility.3

Japan’s economic growth forecasts were cut due to oil prices and a weaker yen, the Times of India reported.3 The Federal Reserve’s liquidity facility could prevent Japan from selling Treasuries to prop up the yen, according to Evercore ISI.9 The yen hit a three-month high after the joint intervention, according to The Guardian.5