US and Japan Team Up to Support Yen Amid Currency Market Turmoil

The US and Japan intervened in currency markets to prop up the yen's value against the dollar. The move was confirmed by President Donald Trump and Japanese Finance Minister Satsuki Katayama, who stated that both countries had purchased yen in coordination with each other.

The intervention comes as the dollar had weakened sharply against the yen earlier this week, falling from above 163 yen to below 160 yen. The prolonged weakness of the yen has been a source of frustration for Tokyo, as it increases prices and puts pressure on the administration of Japanese Prime Minister Sanae Takaichi.

The joint intervention was likely triggered by the interest rate gap between the US and Japan, which has led investors to sell yen and buy dollars. Trump explained that the US had helped because 'Japan's been very good to us, with the exception, of course, of Pearl Harbor.' He also stated that it was a 'signal of friendship' and 'good for the world economy.'