Scott Bessent Says America 'Delivers' for 'Trusted Partners' as US, Japan Confirm Joint Yen Intervention: Economist Says Goal Is to 'Buy Time'
The U.S. Treasury joined Japan’s Ministry of Finance in a coordinated yen-buying operation, with officials from both countries pledging to intervene again if disorderly market conditions continue.
US and Japan Signal More Joint Action
Japan’s Ministry of Finance announced on X that it purchased yen on Friday in coordination with the U.S. Treasury to counter what it described as excessive volatility and disorderly movements in the currency.
The ministry said the intervention was conducted under a September 2025 U.S.-Japan agreement that provides for coordinated action during periods of market disruption.
It also announced plans to use the Federal Reserve’s Foreign and International Monetary Authorities (FIMA) Repo Facility in future operations.
Earlier this month, the yen weakened beyond 163 against the U.S. dollar, its lowest level in nearly four decades.
At the time of writing, it would take 156.49 yen to buy a single U.S. dollar.
Bessent Backs Japan’s Policy Shift
Treasury Secretary Scott Bessent on X said the Trump administration remains in close contact with Japan and “will not hesitate” to participate in further joint intervention.
Bessent described the U.S.-Japan alliance as one built on economic and national security, adding that the Treasury strongly supports Japan’s efforts to address what he called the yen’s “substantial undervaluation.”
He said that Prime Minister Sanae Takaichi‘s government was entering “an exciting new phase of Abenomics” after years of monetary stimulus created stronger underlying economic conditions.
Previous U.S. interventions in the yen came in 1998, when Washington joined Japan in buying the currency during the peak of the Asian financial crisis, and in 2011, when it joined G7 nations in selling yen after the earthquake and tsunami in eastern Japan.
The Goal Is To Buy Time
Economist Mohamed El-Erian said the coordinated messaging from Washington and Tokyo may be aimed as much at influencing markets as intervening in them.
In a post on X, he said the two countries were using “strong words as a substitute for actual market intervention” to discourage investors from testing policymakers’ resolve while buying time for Japan’s broader policy measures to take effect.
Markets Had Been Bracing for Action
The coordinated intervention follows reports on Friday that the U.S. Treasury had alerted several banks it could enter the yen market alongside Japanese authorities.
Reuters also photographed a note on Bessent’s legal pad during a Cabinet meeting that read, “Buy Japanese Yen (JPY) $5-10 bil.”
The move also comes days after economist Peter Schiff warned that Japan’s mounting debt and currency pressures could trigger broader financial turmoil.
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Image via Shutterstock/ Maxim Elramsisy