US and Japan Reaffirm Yen Support Amid Ongoing Market Volatility

Japan and the United States have said they are ready to intervene again in the foreign exchange market to support the yen, which has been weakening due to interest rate differences between the two countries.

The US dollar-yen exchange rate hit a four-decade low of 163.99 last month, prompting the joint intervention on July 31, the first since 2011 when the US and Japan sold yen to stop it rising after a huge earthquake.

US President Donald Trump called the concerted action 'a signal of friendship' with Japan and 'good for the world economy', while US Treasury Secretary Scott Bessent said they will not hesitate to participate in further joint intervention.

The intervention came as the yen has been sliding despite previous interventions, with the Bank of Japan hiking interest rates to a 31-year high of 1 percent in June, which is well below the US Federal Reserve's 3.5-3.75 percent rate.