The United States and Japan confirmed they jointly intervened in currency markets to strengthen the Japanese yen. The move came after the U.S. dollar reached a 40-year high against the yen, which has increased the cost of imports for Japan.
In an official announcement on Monday, Japan's Finance Minister Satsuki Katayama stated the intervention was coordinated with the U.S. Treasury Department to counter "excessive volatility and disorderly movements" in the currency. U.S. officials also confirmed the action. Such overt, coordinated interventions are rare and signal significant concern from monetary authorities about currency levels.
Market Impact: In pre-market trading, S&P 500 Futures are up +0.51%, Nasdaq Futures are +0.59%, and Dow Futures are +0.57%. In Europe, the DAX is trading higher by +1.28%. Asian markets, including the Nikkei 225 and KOSPI, are closed.