At 156 yen per dollar, yen rises 2.36% as the U.S. and Japan coordinate in the foreign exchange market

[Financial News] The yen surged as the United States and Japan stepped in with joint buying to lift its value.
According to Japanese media outlets, including Nikkei, Inc., the yen traded at 156.41 per dollar at 2:34 p.m. on the 3rd, down 3.79 yen, or 2.36%, from the previous session. The yen had fallen to 163.96 per dollar on the 23rd of last month, its weakest level in about 40 years, but it began rising sharply from the 28th.
Foreign media reported that the Japanese government and the Bank of Japan (BOJ) began intervening in the foreign exchange market on the 30th of last month and aggressively buying yen. The Financial Times (FT) reported that the Federal Reserve Bank of New York, under the Federal Reserve System, intervened in the market on the 31st of last month, selling euros and buying yen. It was the first time since 1998 that the two sides had coordinated in the foreign exchange market to curb the yen's decline.
U.S. Treasury Secretary Scott Bessent acknowledged the intervention on the 31st of last month in a post on X on the 2nd. Japan's Minister of Finance, Satsuki Katayama, also confirmed the intervention in a statement on the 3rd.
However, The Nikkei reported on the 3rd that despite the two countries' intervention in the foreign exchange market, it would be difficult to reverse the yen's downward trend. It also said further intervention by both sides could follow. At a press conference that day, Chief Cabinet Secretary Minoru Kihara said, "This coordination was carried out based on the joint statement issued by the two finance ministries in September last year, and we are also keeping in mind the possibility of further intervention by both countries." In an X post, Bessent said, "The U.S. Treasury is closely communicating with the Ministry of Finance Japan and the Bank of Japan, and we are monitoring the situation carefully. We will not hesitate to participate in additional joint intervention."
[email protected] Park Jong-won Reporter