President Donald Trump confirmed on Sunday that the United States had intervened jointly with Japan to support the yen, describing the move as a'signal of friendship' that would financially benefit the US and the global economy. The Financial Times reported that the US Treasury, in coordination with Japan, took steps to prop up the yen for the first time in nearly three decades.
Joint Intervention to Stabilize Yen
The intervention came after the yen reached its weakest level since 1986, sliding to 163.24 per dollar. Higher US interest rates, rising oil prices, and persistent capital outflows had weighed on the currency. The Federal Reserve Bank of New York sold euros to buy yen on behalf of the US Treasury, according to the Financial Times.
In Tokyo, Japan's Finance Minister Satsuki Katayama confirmed the joint intervention, stating that the ministry purchased the Japanese yen in coordination with the US Department of the Treasury on Friday. She noted that the action countered excessive volatility and disorderly movements in the yen in recent months and signaled a readiness for further joint interventions if necessary.
Trump's Remarks on US-Japan Relationship
Speaking aboard Air Force One, Trump explained the US decision to support Japan's currency, saying, 'Because we have a good relationship with Japan.' He added that the US would see 'financial benefit' from the move and that it was 'also good for the world economy,' but emphasized that 'it was really more than anything else, it was a signal of friendship.'
Trump highlighted the strong financial position of the US and noted Japan's weakening yen, saying, 'They wanted a little bit of help. And we're always there for Japan. Japan's been very good to us, with the exception, of course, of Pearl Harbor.'
US Treasury Secretary Scott Bessent echoed the sentiment in an X post, stating that Friday's coordinated foreign exchange actions countered disorderly yen movements and that the US would not hesitate to participate in further joint intervention, citing economic security and the US-Japan alliance as reasons behind it.
