US Buys Japanese Yen for First Time in Over a Decade Amid Currency Weakness
The US Treasury Department has made its first purchase of Japanese Yen in over a decade as the currency continues to weaken against the US dollar. According to President Donald Trump, this move is a sign of friendship between the two countries and aims to have a positive impact on the world economy.
In a statement, Trump mentioned that the US would also benefit financially from this step, although he did not disclose further details. The New York Federal Reserve Bank bought Japanese Yen by selling Euros on behalf of the US Treasury Department, as reported by the Financial Times.
US Treasury Secretary Scott Bessent stated that both countries can jointly intervene in the foreign exchange market if necessary. A plan to buy Japanese Yen worth 5 to 10 billion US dollars was mentioned on a notepad belonging to Bessent, according to a photo released by Reuters.