US Buys Yen to Counter Record Low Value
The US has intervened in Japan's currency market for the first time in over a decade to support the yen, which has dropped to a 40-year low against the US dollar. The move is seen as a sign of friendship between the two nations, according to President Donald Trump.
'They have a weakening yen, and they wanted a little bit of help. And we're always there for Japan,' Trump said aboard Air Force One on Friday. This rare intervention marks the first joint currency market action by the US and Japan since 2011, when G7 nations and the Bank of Japan coordinated efforts to curb a sharp rise in the yen following the devastating earthquake and tsunami.
Treasury Secretary Scott Bessent said the US and Japan jointly intervened in foreign exchange markets on Friday to curb disorderly swings in the yen. The Treasury Department 'will not hesitate to participate in further joint intervention,' Bessent added. Japan's Finance Ministry also confirmed that the intervention aimed at countering excessive volatility and disorderly movements in the yen.