Japan Spent Record $98.7 Billion to Prop Up Yen in Joint Move With U.S.

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1. 16d ago

   Japan Spent Record $98.7 Billion to Prop Up Yen

   Japan spent a record $98.7 billion to support the yen in a joint move with the US. The intervention, confirmed by Japan's Finance Ministry, was the largest in history. The yen has been under pressure due to the US dollar's strength, and the intervention aims to stabilize the currency. The move is seen as a significant step to address the yen's decline.

   Why it matters

   The yen's decline has significant implications for Japan's economy, as it increases the cost of imports and could lead to higher inflation. The US-Japan joint action is seen as a rare instance of cooperation between the two countries on currency issues. The intervention's effectiveness in stabilizing the yen remains to be seen. The yen's value affects not only Japan but also global trade and finance.

   What is confirmed

   • Japan spent a record $98.7 billion to support the yen.
   • The intervention was a joint move with the US.
   • The yen has been under pressure due to the US dollar's strength.
   • Japan's Finance Ministry confirmed the intervention.

   Still unconfirmed

   • A 'disorderly yen' could ultimately raise US interest rates.

   What to watch next

   • The effectiveness of the intervention in stabilizing the yen
   • The US Federal Reserve's response to the yen's decline
   • Japan's future currency market interventions
   Sources used for this update (14)

   1. WSJ — Japan Spent Record $98.7 Billion to Prop Up Yen in Joint Move With U.S.
   2. Bloomberg.com — Bessent Says a ‘Disorderly Yen’ Could Ultimately Raise US Rates
   3. Reuters — Japan spent record $96.5 billion to support yen over past month, ministry data shows
   4. The Lufkin Daily News — Japan's Finance Minister Satsuki Katayama speaks to the media about the U.S.-Japan joint forex action, in Tokyo
   5. ETF Database — Yen Intervention Could Bring Growth With Japan Opportunities ETF
   6. Investing.com — Breaking down the U.S.-Japan “currency alliance”
   7. Yahoo Finance — Will Bessent’s intervention mark a turning point for the yen?
   8. CNBC — Bessent attacks Warren over yen intervention query, offers ‘Foreign Exchange for Dummies’ lesson
   9. France 24 — Japan spent record $96 bn in yen interventions: ministry
   10. Bloomberg.com — Japan Yen Intervention Hits Record $96 Billion in Past Month
   11. Reuters — Japan's yen rescue has echoes of Asian financial crisis, ex-FX diplomat says
   12. nippon.com — Disorderly Yen Markets Could Raise U.S. Borrowing Costs: Bessent
   confidence 85%