Overview
- Tokyo’s Ministry of Finance and the U.S. Treasury confirmed they carried out coordinated yen-buying operations that pushed USD/JPY from near 164 to roughly the mid-150s.
- Officials said the operation was taken to counter disorderly moves in the yen and that both governments will not hesitate to repeat joint intervention if markets require it.
- Bank of Japan and market reports put Japan’s buys in the tens of billions of dollars, with BOJ-linked data cited at about $59 billion and photographic evidence showing U.S. consideration of $5–10 billion in purchases.
- The intervention used major banks as execution counterparties and involved U.S. operational support through the New York Fed and wider access to Fed repo facilities to provide dollar liquidity.
- Analysts warn the move may trigger unwinding of yen-funded carry trades that could raise volatility in global risk assets and put pressure on bond markets unless the BOJ tightens policy.