US and Japan Unite to Save Yen from Record Lows

The US and Japan have taken joint action to prop up the yen after it reached a 40-year low. The Japanese government confirmed that they had taken steps to counteract 'excessive volatility and disorderly movements' in the currency, following a rare intervention by the US Treasury.

The yen surged over 1% to 155.20 per dollar after the joint intervention, its strongest level since early May. This comes as the yen had previously sunk to its lowest price against the US dollar since 1986.

The US has not bought up the yen since 2011 following a devastating earthquake in eastern Japan. Donald Trump stated that the US was helping Japan support its currency 'as a sign of friendship and to help the world economy.'

Japan's finance minister, Satsuki Katayama, said that they would 'not hesitate conducting further coordinated intervention' if needed.