TOKYO — Japan and the United States confirmed a coordinated yen-buying intervention on Friday. The joint action marked the first time the two nations have executed such a measure together since 2011.

The Japanese Ministry of Finance stated the intervention countered excessive volatility and disorderly movements in the Japanese yen. US Treasury Secretary Scott Bessent confirmed the coordinated foreign exchange actions on Friday.

"Friday's coordinated foreign exchange actions countered disorderly yen movements," Bessent said. He added that the Treasury remains attentive to market conditions.

"Treasury remains attentive and in close communication with our counterparts at MOF and BOJ. We will not hesitate to participate in further joint intervention," Bessent said. The statement emphasized ongoing cooperation between the financial authorities of both nations.

Bessent also expressed support for Japan's domestic monetary policy decisions. "We strongly support Japan’s decisive market and monetary steps to correct the substantial undervaluation of the yen," he wrote on his social account.

The Federal Reserve Bank of New York sold euros for yen on behalf of the US Treasury Department through Goldman Sachs and Morgan Stanley. This transaction facilitated the American portion of the coordinated effort to stabilize the currency pair.

A photograph showed US Treasury Secretary Scott Bessent's notepad with the handwritten text "To Do" followed by "Buy Japanese Yen (JPY) $5-10 bil." during a cabinet meeting at Camp David. The image provided insight into the scale of the planned purchase prior to the official confirmation.

The US Treasury informed a number of banks on Friday that it might intervene in the yen market and that they should stand ready for future action. This advance notice allowed financial institutions to prepare for potential market operations.

US President Donald Trump stated the US helped prop up the yen as a sign of friendship and to support the global economy. He framed the intervention as a gesture of alliance rather than purely economic necessity.

"They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan," Trump said. He characterized the relationship between the two countries as historically strong.

President Donald he stated Japan has always been very good to the US, with the exception of Pearl Harbor. He cited this long-standing partnership as a basis for the current financial support.

Trump also noted that the US derived advantages from the move. President Donald he stated the US got financial benefit out of the intervention. He further stated the intervention was good for the world economy.

President Donald Trump cited last year’s $20 billion bailout for Argentina and the capture of Venezuelan President Nicolás Maduro as examples of how US intervention has helped bolster other countries’ economies. He used these instances to illustrate a pattern of US engagement in global economic stability.

The Japanese Ministry of Finance stated it remains in close communication with the U.S. Treasury and will not hesitate to conduct further joint intervention. This declaration signaled a willingness to continue collaborative efforts if market conditions deteriorate.

The Japanese Ministry of he said Japan plans to utilize the Federal Reserve's foreign and international monetary authorities repo facility in the future. This mechanism provides a structured channel for liquidity support between the central banks.

The yen had hit 163.73 against the US dollar on Thursday. Bank of Japan data indicated Tokyo may have sold as much as $58.97 billion to buy yen when it intervened in New York markets on Thursday.

The yen strengthened to 157.57 against the US dollar on Friday. The dollar ended Friday trading around 157.60 yen. The currency continued to trade near these levels as the week progressed.

The yen was trading at 157.70 per dollar on Monday. The market remained stable in the days following the coordinated announcement.

The yen gained as much as 1.4 percent to hit a nearly three-month high of 155.20 per US dollar following the announcement. This rapid appreciation reflected the immediate impact of the joint buying pressure.

The Nikkei share average tumbled following the rapid appreciation of the yen. Equity markets reacted negatively to the stronger currency, which can reduce the competitiveness of Japanese exports.

The Bank of Japan kept short-term interest rates steady at 1 percent on Friday. The central bank offered its most explicit signal to date of an early rate hike on Friday.

The Bank of Japan raised interest rates to 1 percent in June. PureSource News previously reported that the Bank of Japan Increases Policy Rate to 1 Percent. The institution, which was established in 1882, has gradually adjusted its monetary stance in recent months.

PureSource News previously reported that the Japanese Yen Falls Past 162 To US Dollar. The currency had faced sustained pressure before the recent interventions. Japan intervened in April and May, buying yen, in previous attempts to stabilize the exchange rate.

The joint intervention is the first since a 2011 coordinated action to weaken the yen after the earthquake in eastern Japan. That earlier effort aimed to support export competitiveness in the aftermath of the disaster.

This coordinated intervention represents a significant shift in currency management strategy between the United States and Japan. The United States, located in North America with its capital in Washington D.C. is classified by the World Bank as a high income economy. Its participation signals a departure from recent hands-off approaches to foreign exchange markets.

The Japanese Ministry is ministry that operate in Japan, and its coordination with the US Treasury shows the depth of bilateral financial integration. The use of the Federal Reserve's repo facility and the involvement of major banks like Goldman Sachs and Morgan Stanley demonstrate the institutional infrastructure supporting these operations. The explicit threat of further joint action serves as a deterrent against speculative trading that could destabilize the yen.

Why It Matters

This coordinated intervention marks the first joint currency action between the United States and Japan since 2011, signaling a renewed willingness to collaborate on market stability. Both nations explicitly stated they remain ready to conduct further joint interventions if disorderly movements persist, establishing a precedent for ongoing bilateral support. The move also activates mechanisms like the Federal Reserve's repo facility for future liquidity, deepening financial integration between the two allies.