US Intervenes in Foreign Exchange Market to Support Japanese Yen

The US is intervening in the foreign exchange market to support the Japanese yen, which has dropped to a 40-year low against the dollar. President Donald Trump said this is a 'signal of friendship' and that the US is always there for Japan.

The move comes after the Federal Reserve Bank of New York sold euros for yen on behalf of the Treasury Department, as reported by the Financial Times. The US and Japan have coordinated foreign exchange actions to counter disorderly yen movements.

Treasury Secretary Scott Bessent said that the US supports Japan's efforts to correct the undervaluation of the yen. He noted that the Treasury Department 'will not hesitate to participate in further joint intervention.'