Photo of a yen note. Thomas White/Reuters Japan and the United States entered the market together to buy yen and try to stop the fall of the Japanese currency, which was heading towards its lowest level in 40 years. According to Japan's Ministry of Finance, the two countries will not hesitate to take further measures. The measure, considered unusual, was taken last Friday (31), and was intended to prevent the sharp fall in the yen and Japanese public bonds from causing global repercussions. ?? Do you have any reporting suggestions? Send to g1 Analysts say that a strong devaluation of the yen could cause instability in global markets and increase the United States government's financing costs. This was the first coordinated action between Japan and the United States since 2011, when the two countries acted together after the earthquake and tsunami that devastated eastern Japan.
Japan and the US buy yen to contain the fall of the Japanese currency
Photo of a yen note. Thomas White/Reuters Japan and the United States entered the market together to buy yen and try to stop the fall of the Japanese currency, which was heading towards its lowest level in 40 years....
Data released by Japan's central bank indicates that the country may have spent up to US$36.58 billion (R$185.7 billion) buying yen during Friday's operation. On Sunday, United States President Donald Trump stated that supporting the yen is a gesture of friendship to Japan and a way of contributing to the stability of the world economy. Analysts say the move benefits a strategic ally of the United States in Asia and also helps Washington deal with the sharp devaluation of the yen. This is because a weaker Japanese currency makes the country's products more competitive abroad, reducing part of the effect of the tariffs adopted by Trump. In a statement, Japan's Ministry of Finance stated that the operation carried out in conjunction with the United States Treasury Department helped to contain the strong fluctuations in the yen recorded in recent months. "We will not hesitate to take further joint actions if necessary," said Japanese Finance Minister Satsuki Katayama on Monday (3). After the announcement, the yen appreciated by more than 1% and traded at 155.20 per dollar, the strongest level since the beginning of May. The currency has moved away from a nearly 40-year low recorded last month, when it reached close to 164 yen per dollar. Even so, investors continued to pay attention to the possibility of further actions by the authorities. Asked about a possible new government action this Monday, Katayama refused to comment.
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