The United States and Japan have launched a rare coordinated intervention to support the weakening yen, as Washington tries to prevent the currency's slide from destabilizing the global financial system. US Treasury Secretary Scott Bessent said the US is doing whatever it takes to support Japan, warning that the yen's substantial undervaluation could cause other economic problems or prompt competitive devaluations by other countries, which he called unhealthy.
The yen has been plummeting in recent months, raising concerns among policymakers. The joint action marks an unusual step: Washington and Tokyo rarely intervene together in currency markets. The intervention aims to halt the yen's decline and avoid spillover effects that could ripple through the world economy.
Bessent's remarks, reported by Global News, underscore the seriousness with which the US views the situation. He cautioned that a persistently weak yen might trigger a chain reaction, with other nations devaluing their currencies in response — an outcome he described as bad for global trade.
According to Al Jazeera, the coordinated effort is intended to keep the yen's problems from spreading to the global financial system. The US and Japan are acting in sync to stabilize the currency and calm markets.