Japan’s MoF Intervenes in FX Market to Support Yen, with US Treasury Backing

Japan’s Ministry of Finance intervened in currency markets to counter a weak Japanese yen, Commerzbank’s Volkmar Baur reported, noting apparent backing from the US Treasury. The move comes amid Tokyo inflation hovering around 2% and showing signs of further upside.

The intervention suggests coordinated efforts to curb excessive yen depreciation, which has been a concern for Japanese authorities. The Bank of Japan’s cautious stance remains in focus as inflation dynamics could pressure policy normalization.