The Japanese yen has surged against major currencies as markets widely expect the Bank of Japan to raise interest rates soon, signaling a potential end to decades of ultra-loose monetary policy.
The United States and Japan announced a rare joint intervention in foreign exchange markets to support the weakening yen. Both countries pledged they will not hesitate to conduct further joint interventions if necessary.
US Treasury Secretary Bessent and the Federal Reserve have helped Japan reverse months of yen depreciation in a rare coordinated move.
The USD/JPY exchange rate is approaching the 160 psychological level once again, driven by strong U.S. economic data and market expectations ahead of the upcoming Bank of Japan policy meeting.