US backs Japan yen stabilization after joint intervention

The United States has pledged continued support for Japan's efforts to stabilize its currency following a rare joint intervention last week, a move aimed at addressing the yen's steep decline and its potential ripple effects on the global economy. Treasury Secretary Scott Bessent affirmed the U.S. commitment in a television interview on August 4, stating the administration will "do whatever it takes" to support Japan in a manner that also benefits the American economy.

The joint action, which took place on July 31, marked the first time the U.S. has intervened to support the yen in 28 years and the first American participation in any yen intervention in 15 years. The operation temporarily strengthened the Japanese currency from recent 40-year lows near 164 yen to the dollar to approximately 156. By August 4, the yen had slipped back to around 157.55 per dollar, underscoring the persistent market pressures.

Secretary Bessent characterized the yen as "substantially undervalued," warning that its weakness could lead to unhealthy competitive devaluations of other currencies. He emphasized that the U.S. involvement was a "reallocation of resources" and reassured European partners...