If there was a coordinated attempt across the Pacific to strengthen the yen, then the Bank of Japan was the weakest link.
Whatever happened with Thursday¡¯s unexpected intervention, which saw the yen strengthen the most in more than two years versus the dollar, it showed that governments in the U.S. and Japan were on the same page in a way that not too long ago would have seemed impossible.
Tokyo¡¯s top currency official, Atsushi Mimura, hinted that Tokyo had backing from Washington that ¡°goes beyond mere moral support.¡± That seems to have included rate checks from the U.S., with Treasury Secretary Scott Bessent telling an interviewer that the yen was ¡°very undervalued,¡± and coordination with South Korea, which is also suspected of intervening in the won market. Authorities in Seoul acknowledged that they¡¯re in communication with Tokyo and Washington.
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