U.S. Treasury Secretary Scott Bessent said Washington is prepared to take part in further coordinated currency intervention with Japan if disorderly movements in the yen continue.
U.S. and Japan Remain in Close Contact
In a post on X, Bessent said the joint intervention carried out by the United States and Japan on Friday helped counter sharp and unstable movements in the Japanese currency.
He added that the U.S. Treasury remains in close contact with Japan’s Ministry of Finance and the Bank of Japan.
Bessent made it clear that Washington would not hesitate to participate in another joint intervention if market conditions required further action.
Treasury Supports a Wider Liquidity Backstop
The Treasury secretary also expressed support for expanding the Federal Reserve’s Foreign and International Monetary Authorities Repo Facility.
Known as the FIMA Repo Facility, the programme allows foreign monetary authorities to access dollar liquidity using U.S. Treasury securities as collateral. Bessent described it as an important financial backstop during periods of market stress.
Yen Rebounds After Coordinated Intervention
Japan confirmed that the recent action marked its first coordinated yen-buying intervention with the United States since 2011.
The decision followed a steep decline in the yen, which had fallen to its weakest level against the dollar in around 40 years.
The intervention triggered a sharp recovery. The yen strengthened by more than 2% on Thursday and continued to rise on Friday, moving below 158 per dollar before the Bank of Japan announced its latest policy decision.
Bank of Japan Keeps Rates Unchanged
The Bank of Japan left its short-term interest rate unchanged at 1% on Friday.
However, policymakers indicated that further rate increases remained possible if underlying inflation continued to strengthen.
USD/JPY was last trading around 157.71 early on Monday, slightly higher during the session. Nevertheless, the pair had fallen by almost 4% during the previous week as the yen recovered.
Trump Backs the Joint Currency Action
U.S. President Donald Trump also supported the coordinated intervention, describing it as a sign of friendship and economic cooperation between the two countries.
Speaking to reporters aboard Air Force One, Trump said Japan had requested assistance and that the United States was prepared to support its ally.
Bessent Supports Japan’s Economic Strategy
Bessent said the United States strongly supports Japan’s recent monetary and market policy measures.
He argued that the yen remained significantly undervalued and said Prime Minister Sanae Takaichi’s government was entering a new phase of its broader economic strategy.
The comments suggest that both countries are prepared to continue cooperating if excessive currency volatility returns.
