US and Japan Intervene to Stabilize Weakening Yen

The United States and Japan have jointly intervened in the foreign exchange market to stabilize the yen, which hit a 40-year low against the US dollar. The intervention, confirmed by Japan's Ministry of Finance, is the first of its kind since 2011.

Finance Minister Satsuki Katayama stated that the ministry remains alert and will not hesitate to conduct further joint intervention if disorderly market movements continue. The bilateral operation was a response to excessive volatility in the yen during recent months.

US President Donald Trump confirmed Washington's involvement, describing it as an act of friendship and a measure intended to benefit the global economy. He stated that Japan had a weakening yen and wanted some help, which they received from the US.

The Bank of Japan raised its benchmark interest rate in June to 1%, but this failed to generate a sustained recovery in the yen. The central bank kept monetary policy unchanged on Friday, indicating that another rate increase could come relatively soon.