US and Japan Intervene in Markets to Stabilize Yen
US President Donald Trump and Japan's Finance Minister Satsuki Katayama confirmed that both countries intervened in markets to stabilize the Japanese yen against the US dollar.
The intervention came after the dollar reached a 40-year high of over 163 yen, but fell sharply to below 160 yen after regulators were suspected of stepping in. The dollar dropped about 1% to 156.34 yen on Monday morning, a significant change from its previous value.
The yen's weakness against the dollar has been a concern for Tokyo due to Japan's reliance on imports, which drives up prices and increases inflation. Trump said that the US intervened to help Japan with a 'weakening yen' and received 'financial benefit' from the move, calling it a 'signal of friendship'.
Finance Minister Katayama confirmed the intervention, stating that the ministry had purchased yen in coordination with the US Treasury Department to counter 'excessive volatility and disorderly movements in the Japanese yen'. This is a rare acknowledgement of market intervention by governments.