The US and Japan have confirmed a rare joint intervention in the currency market to bolster the yen, a move that strategists say increases the risk for anyone betting against the Japanese currency. President Donald Trump said the US participated in the intervention, which lifted the yen last week, describing it as a sign of friendship with Japan. The coordinated action by the two governments is a departure from the norm, as such interventions are rarely carried out together. Strategists say the joint effort makes it riskier for investors holding short positions on the yen, as it signals both countries are prepared to support the currency. The yen strengthened as a result of the intervention, reflecting the immediate effect of the combined official action. Trump's characterization of the operation as a gesture of friendship highlights the diplomatic aspect of the move. The confirmation of the joint intervention is expected to influence currency market trading, with analysts watching for any additional coordinated steps.
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