US support for Japan’s yen-stabilization is deepening, with coordination at
levels not seen in decades. On Thursday Japan reportedly bought yen, estimated
at about $53bln, while US authorities made exchange-rate inquiries to banks —
moves the market viewed as a precursor to intervention. Treasury Secretary
Bessent said the yen is “severely undervalued” and excessive volatility is
unhealthy. Nobuyasu Atago, chief economist at Lotte Securities and a former BOJ
official, said Bessent’s influence is significant and the US is increasingly
cooperating with Japanese intervention. The timing — between Fed and BOJ rate
decisions — has spurred market speculation that monetary-policy coordination may
be part of the effort. Japanese officials remained ambiguous on further
intervention but emphasized US coordination; Jun Mimura, the Ministry of
Finance’s top currency official, said the US provided more than “moral support.”
