US and Japan Stage Joint Yen Intervention

The US and Japan have intervened jointly to support the yen after it hit a four-decade low. This is their first joint action in 28 years, with the previous one being in 2011 when they sold yen to stop its rise following a massive earthquake.

The yen's weakness has been attributed to the gap between Japanese and US interest rates, which has fueled a 'carry trade' by investors borrowing yen cheaply and investing in other assets outside Japan. This has resulted in capital outflows and further downward pressure on the yen.

US President Donald Trump confirmed the concerted action aboard Air Force One, calling it a 'signal of friendship' with Japan and 'good for the world economy'. The US Treasury Secretary Scott Bessent also expressed support for Japan's market and monetary steps to correct the yen's undervaluation.