US and Japan Unite to Support Yen Amid Trade Tensions
The US and Japan have taken a rare joint step to stabilize the yen, which had slumped to a four-decade low of almost 164 yen to the US dollar.
According to analysts, this intervention has given US-Japan relations a near-term lift. However, whether this goodwill endures depends on how long the currency's rebound can survive mounting market and policy pressures.
The operation, Washington's first yen purchase since 1998, came after the Japanese currency had fallen to its lowest level in over four decades.
US President Donald Trump announced that his administration had bought the yen to help Japan, signaling a more positive turn in relations after months of tense negotiations with Tokyo over a US trade deficit that reached $63.9 billion last year.