US and Japan Team Up to Support Weak Yen

The US and Japan have announced that they are ready to intervene again in the foreign exchange market to support the yen, following a joint operation on July 31. The yen has been weakening due to the gap between Japanese and US interest rates, as well as concerns over Japan's massive debts under new Prime Minister Sanae Takaichi.

The last time Washington and Tokyo bought yen was in 1998, according to Japan's finance minister. This latest intervention comes after the yen hit a 35-year low of 163.99 per dollar last month, but has since rebounded to around 155.00.

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