Japan is expected to announce on Monday that it coordinated with the United States to intervene in currency markets to halt the yen's slide to its weakest level in nearly four decades, marking the first joint action by the two countries in 15 years.
Finance Minister Satsuki Katayama is expected to confirm that Tokyo and Washington jointly bought yen last week to counter what officials described as excessive currency weakness, according to two Japanese government sources. One source said the intervention was still ongoing.
The move follows comments by U.S. President Donald Trump, who said Washington was assisting Japan "as a sign of friendship" and to support the global economy.
"They have a weakening yen, and they wanted a little bit of help. And we're always there for Japan," Trump told reporters on Sunday.
Market participants believe Japanese authorities intervened on Thursday and Friday after the yen fell close to 164 per dollar, its weakest level since 1986.
Following Trump's remarks, the dollar slipped 0.2% against the Japanese currency to around 157 yen.
Bank of Japan data indicated Tokyo may have spent as much as $59 billion buying yen on Thursday alone. Reuters also reported that the U.S. Treasury alerted several banks that it might participate in the intervention.
Treasury Secretary Scott Bessent has previously described the yen as "very undervalued".
Japan has struggled to contain the yen's prolonged decline, which has driven up import costs, fuelled inflation and weighed on household finances, adding pressure on Prime Minister Sanae Takaichi's government.
The Bank of Japan also signalled on Friday that it could raise interest rates sooner than previously expected, although it left monetary policy unchanged at its latest meeting.
South Korea also intervened in currency markets last week to support the won, signalling broader regional efforts to stabilise exchange rates.
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