US and Japan Unite to Support Weakened Yen Amid Global Economic Concerns

Japan and the US have collaborated to stabilize the yen's value, which had fallen to 40-year lows. According to sources, Tokyo and Washington jointly intervened in the currency market last week to arrest excessive declines in the yen. The operation is said to be ongoing.

The dollar fell by 0.2% to 157.07 yen after US President Donald Trump made public comments on the issue, stating that the US was helping Japan to prop up its currency as a sign of friendship and to benefit the world economy. Trump mentioned Japan's support for the US in various areas, with the exception of the attack on Pearl Harbor.

Japan has been struggling to curb a relentless drop in the yen, which pushes up import prices and fuels inflation, affecting households' wallets and Prime Minister Sanae Takaichi's public approval ratings. The Bank of Japan has indicated that it may have sold as much as $58.97 billion to buy yen when it intervened in New York markets on Thursday.

The US Treasury also signaled its intention to intervene in the yen market, with Secretary Scott Bessent having a 'To Do' list that included buying Japanese Yen (JPY) worth $5-10 billion. This move aligns with Bessent's repeated calls for higher Japanese interest rates.