Japan and U.S. Stage Rare Joint Yen-Buying Intervention After BOJ Signals Faster Rate Hikes

BlockBeats reported that Japan's Kyodo News said on Aug. 10 that multiple Japanese government officials disclosed a rare coordinated market intervention by Japan and the United States to buy yen on July 31 (U.S. Eastern Time), the first joint action of its kind in 28 years. Officials attributed the move to comments from Bank of Japan Governor Kazuo Ueda at his July 31 press conference, where he strongly indicated the central bank could raise policy rates as soon as September and beyond. Ueda added that the BOJ would "accelerate the pace of rate hikes" if needed. The U.S. side was said to have welcomed the shift, as both governments are seeking to curb excessive yen weakness. Washington has been concerned that Japan's delayed tightening has contributed to outsized yen depreciation, amplifying inflation pressures and pushing up long-term interest rates in ways that could spill over into global financial markets. One senior Japanese government official said Ueda's remarks were "highly persuasive" to U.S. counterparts, adding that the BOJ now has little room to avoid raising rates at its next policy meeting scheduled for Sept. 17–18.