After joining hands in a rare currency market intervention, the US and Japan have left the door open for more coordinated action, with Tokyo saying it is ready to step in again if yen continues to swing.In a statement issued on Monday, Japan’s ministry of finance said it intervened in the foreign exchange market on Friday, July 31, buying yen in coordination with the US department of the treasury. The move was aimed at addressing what it described as excessive volatility and disorderly movements in the Japanese currency.The ministry said the intervention was undertaken under the framework of the Japan-US Finance Ministers’ Joint Statement issued in September 2025.It also announced plans to use the US Federal Reserve’s Foreign and International Monetary Authorities (FIMA) Repo Facility in the future.“Japan plans to utilize the Federal Reserve’s “Foreign and International Monetary Authorities Repo Facility” (FIMA Repo Facility) in the future,” it said.Emphasising that close coordination with Washington will continue, the Ministry said it remains in regular contact with the US Treasury and is prepared to intervene again if market conditions require it.“The Ministry of Finance of Japan is closely monitoring the situation and maintaining tight communication with the US department of the treasury,” it said, adding, “We will not hesitate to carry out further coordinated interventions in the future if necessary.”Explaining the rationale behind the move, the ministry said the intervention was carried out under the September 2025 agreement between the two governments.“This joint action was taken pursuant to the US-Japan Finance Ministers’ Joint Statement issued in September 2025 and countered excessive volatility and disorderly movements in the Japanese yen in recent months,” the Ministry noted.The currency action comes as Japan has also trimmed its economic growth outlook for the current fiscal year. According to Kyodo News, the government has cut its growth forecast to 0.9 per cent from 1.3 per cent, citing the impact of higher crude oil prices on the import-dependent economy.The government said a weaker yen against the US dollar, along with elevated crude oil prices due to the Middle East chaos, continues to pose risks to economic growth.