FT News Briefing US and Japan flirt with joint currency intervention
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Jan 27, 2026 
Michelle Chan, a U.S. credit correspondent covering corporate bond markets, and Ian Smith, a senior markets correspondent focused on currencies and bonds, discuss a sharp yen rally and signs the U.S. and Japan may coordinate to support the currency. They also cover why big tech is rushing into investment-grade bonds and what that surge could mean for borrowing and market concentration.
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Coordinated Intervention To Curb Market Spillovers
- The US and Japan may coordinate currency action to prevent disorderly yen moves that spill into US markets.
- Currency intervention can be used to protect exporters and curb bond-market volatility, not just influence exchange rates.
Rate Checks Signal Intervention Prep
- A US 'rate check' with banks signalled authorities were preparing the ground for possible intervention.
- Authorities worry a sharp yen move and weak Japanese bonds would create volatility in US government bond markets.
Domestic Stimulus Weighs On The Yen
- Domestic policy in Japan — a large stimulus package and snap election — is weakening the yen by boosting stocks.
- Fiscal stimulus expectations can erode currency strength by raising debt-sustainability concerns.