Japan to announce that Tokyo and Washington took joint action to support the yen

Japan will announce that Tokyo and Washington conducted joint currency intervention to support the yen, according to Reuters sources cited by CNBC. Japanese Finance Minister Satsuki Katayama is expected to emphasize both nations' commitment to countering what they view as excessive yen weakness when she makes the statement on Monday.

The yen traded steady on Tuesday ahead of a parliamentary vote in Japan later that day. Joint intervention marks a significant escalation in currency market activity, as coordinated G7 action in foreign exchange markets has been rare in recent decades. The last major U.S.-Japan coordinated intervention occurred in 2011 following the Tohoku earthquake.

The announcement follows months of verbal jawboning from Japanese officials as the yen weakened substantially against the dollar. Ministry of Finance statements have repeatedly flagged concerns about rapid, one-sided moves in the currency. The confirmation of actual joint intervention signals Washington shares Tokyo's concern about yen stability, potentially reflecting worries about spillover effects on U.S. exporters or broader financial stability.