US and Japan Intervene to Support Yen in Rare Currency Move
The US has joined Japan in intervening in foreign exchange markets to support the yen, a move that surprised investors. For the first time in nearly three decades, the two countries have coordinated their efforts to stabilize the currency.
The intervention came after the yen slid to its weakest level against the US dollar in almost 40 years, briefly approaching 164 yen per dollar before rebounding sharply. The Federal Reserve Bank of New York sold euros from its strategic international reserves to make trades on Friday, causing the yen to surge by over 1 percent to reach 157 yen to the dollar.
US Treasury Secretary Scott Bessent wrote that the action 'countered disorderly yen movements.' President Donald Trump confirmed that the US had participated in the operation, describing its objective as strengthening the yen, supporting Japan, and preserving global financial stability.