US and Japan Team Up to Boost Yen Amid Sharp Decline

The US Treasury Department and Japan's Finance Ministry joined forces to boost the yen, which had fallen to a 40-year low against the US dollar. This marks the first joint currency intervention since 2011, when the G7 nations and the Bank of Japan intervened in response to a surge in the yen.

The move was seen as a signal of friendship by President Donald Trump, who stated that the US would 'always be there for Japan' in times of need. The joint intervention aimed to curb disorderly swings in the yen's value and support the Japanese currency.

Treasury Secretary Scott Bessent confirmed that the US and Japan had jointly intervened in foreign exchange markets on July 31, and warned that they would not hesitate to participate in further joint intervention if necessary. The Bank of Japan also expressed its commitment to working closely with Washington to maintain stability in the yen.