US and Japan Join Forces to Prop Up Yen Amid Global Economic Concerns

The United States and Japan jointly intervened in currency markets for the first time since 2011 to prop up the yen, which had fallen to a 40-year low. The intervention was a coordinated effort between the US Treasury Department and Japan's Ministry of Finance, with Tokyo selling nearly $59 billion in a single day.

The move aims to prevent a sell-off in the yen and Japanese government bonds from affecting the global economy. US Treasury Secretary Scott Bessent said they will not hesitate to conduct more joint interventions if needed.

President Donald Trump stated that the US stepped in as a gesture of alliance, citing Japan's weakening yen as the reason for the intervention.

The yen surged after the announcement, gaining 1.4 percent and hitting a nearly three-month high. However, the rapid appreciation weighed on Japanese stocks, with the Nikkei share average tumbling.