In a statement Monday morning, Japan’s Finance Minister Satsuki Katayama said the action was taken “pursuant to the U.S.-Japan Finance Ministers' Joint Statement issued in September 2025 and countered excessive volatility and disorderly movements in the Japanese yen in recent months.”
The rare move marks the first joint intervention since 2011, after Japan was struck by a devastating earthquake and tsunami and the U.S. joined other G7 nations in coordinated action to weaken the yen.
According to Bloomberg analysis of central bank data, Japan most likely used around $34 billion intervening in the currency market to support the yen. TIME has been unable to independently verify these figures.
Bessent also indicated the U.S. may consider increasing the size of the Federal Reserve's repurchase facility providing temporary dollar liquidity. “The FIMA Repo Facility is an important backstop. We would encourage it to be upsized in the coming months,” he said.
"They have a weakening yen, and they wanted a little bit of help,” he said. When questioned over what the U.S. is “getting out of that arrangement,” Trump replied “financial benefit,” but emphasized it’s also “good for the world economy.”
Japan had already expressed “serious concern” over the yen's rapid depreciation in March and conducted unilateral intervention between April 28 and May 27.
One reason a stronger yen matters is Japan's dependence on imported energy. According to the International Energy Agency, Japan remains heavily reliant on imported oil and gas, particularly from the Middle East.
As for how the yen depreciated, Japan's comparatively low interest rates have remained a key factor weighing on the currency. The Bank of Japan’s 1% rate remains below the Federal Reserve’s 3.5% to 3.75% target rate, the International Monetary Fund has previously said the yen-dollar exchange rate has been driven by shifts in these interest rates differentials.
“The coordinated intervention will likely temporarily halt the yen’s depreciation, but it won’t cure all that ails it,” researchers argued. “Intervention over the past several years has led to movements in the yen in the short run but has failed to durably reverse the underlying depreciation trend and a similar pattern is likely to play out this time.”
In October 2025, Bessent announced U.S. financial support for Argentina, which included a $20 billion currency swap framework with Argentina’s central bank.
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