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(Bloomberg) -- The yen rebounded after officials verbally intervened, while US and Japanese leaders pledged to deepen security ties.

The currency rose as much as 0.7% against the dollar, the first day of gains in eight. It traded near the weakest level since February on Monday and is the worst performing Group-of-10 currency this month, having slumped around 3% against the greenback.

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The move came as Japan’s minister for growth strategy Minoru Kiuchi said authorities will keep monitoring the impact of yen weakness on the economy, while President Donald Trump and Japanese Prime Minister Sanae Takaichi pledged to tighten security cooperation and increase defense funding.

US officials added to warnings on currency volatility. Treasury Secretary Scott Bessent, who is traveling with Trump to Japan, cited the role of sound monetary policy in preventing excessive exchange rate swings, according to a readout of his meeting with Japan’s Finance Minister Satsuki Katayama.

“We certainly view this US Treasury statement as conveying an underlying message that the current BoJ monetary stance is no longer justified,” said Derek Halpenny, head of global markets research at MUFG Bank Ltd. “At these levels in USD/JPY, the appetite for selling the yen is likely to be a lot weaker.”

No change is expected when the Bank of Japan sets interest rates later this week, but the pressure to hike is building due to elevated inflation and sustained yen weakness.

Focus is also shifting to the Federal Reserve’s meeting on Wednesday, with traders fully pricing a quarter-point cut. This week, Amazon said it was cutting about 14,000 jobs in a major restructuring, adding to concerns about the health of the US labor market. The Bloomberg Dollar Spot Index dipped 0.1%.

“The yen is outperforming on some very mild verbal intervention from Japanese authorities,” said Chris Turner, head of FX strategy at ING Bank NV in London. “In a market deprived of US data by the government shutdown, there may be more focus than usual on reports that Amazon plans to cut jobs.”

--With assistance from Hidenori Yamanaka.

(Updates market moves, adds commentary from the second paragraph.)