In a rare show of financial coordination, the United States and Japan have confirmed that they jointly intervened in currency markets last week to support the Japanese yen after it plunged to its weakest level in four decades against the US dollar. The move marks the first coordinated intervention between the two allies since 2011, when they acted together following Japan’s devastating earthquake and tsunami. The intervention comes as both governments seek to stabilize the yen and prevent further market volatility that could ripple across the global financial system. Japanese officials and US Treasury Secretary Scott Bessent made it clear that they are prepared to take additional coordinated action if needed to counter excessive fluctuations in the currency. Economists say the joint effort reflects growing concerns that a prolonged depreciation of the yen and instability in Japan’s government bond market could have wider consequences, including increased borrowing costs for the United States and heightened uncertainty in global markets. Analysts also believe that even limited interventions can discourage speculative trading by signaling that authorities are willing to act decisively. The yen has remained under pressure largely because Japan continues to maintain significantly lower interest rates than other major economies. While the Bank of Japan raised its benchmark interest rate to 1% in June—the highest level in nearly three decades—it remains well below the US Federal Reserve’s policy rate of 3.50% to 3.75%, making the dollar a more attractive choice for investors. Japan is also grappling with long-term economic challenges, including a shrinking working-age population, sluggish productivity growth and heavy dependence on imported energy priced in US dollars, all of which have contributed to the currency’s weakness. Japan’s Ministry of Finance stated that the coordinated intervention was aimed at countering excessive volatility and restoring orderly conditions in foreign exchange markets. Secretary Bessent echoed that message, saying the United States strongly supports Japan’s efforts to correct what it views as a significantly undervalued yen. President Donald Trump also defended the move, saying Japan had sought assistance in stabilizing its currency and reaffirming Washington’s commitment to supporting its longtime ally. Following the announcement, the dollar briefly weakened against the yen before regaining some ground. Market observers estimate that Japan may have spent nearly $59 billion purchasing yen in recent interventions, while reports suggest the United States may have bought between $5 billion and $10 billion worth of the Japanese currency, although US officials have not officially confirmed the amount. Financial markets are now closely watching whether further coordinated interventions will be required if pressure on the yen continues, with analysts expecting both governments to remain ready to act in order to preserve stability in global currency markets.

SEOUL: South Korea is grappling with one of the most intense heatwaves in its recorded history, with at least 16 people losing their lives and more than 2,000 others suffering from heat-related illnesses as extreme temperatures continue to grip the country. According to South Korean authorities, the nation recently recorded its highest temperature in 122 years of weather observations, with the southern city of Yangsan reaching a scorching 42.5°C. For the first time, officials have issued an extreme heat warning for the capital, Seoul, highlighting the severity of the ongoing weather conditions. President Lee Jae Myung has instructed government agencies to step up emergency measures to protect vulnerable groups, including the elderly, outdoor workers, and people with underlying health conditions. He also directed officials to closely monitor the country’s electricity supply as soaring demand for cooling systems places added pressure on the power grid. Climate experts say the unprecedented heat is being driven by a combination of persistent high-pressure weather systems and the growing impact of climate change, which has intensified extreme weather events across the region. Authorities continue to urge residents to limit outdoor activities, stay hydrated, and take precautions as the record-breaking heatwave shows little sign of easing.