US Intervenes in Japanese Currency Market for First Time in Decade
The US has intervened in Japan's currency market for the first time in over a decade, buying Japanese yen as part of a joint effort with Japan to prop up the currency.
According to President Donald Trump, the move is a 'signal of friendship' and aims to counter the yen's 40-year low against the US dollar.
The depreciation of the yen has been exacerbated by increasing energy costs due to the Iran war, which has worsened Japan's trade balance and generated inflationary pressures.
Japan's Finance Minister Satsuki Katayama stated that the intervention 'countered excessive volatility and disorderly movements in the Japanese yen in recent months.'
The move is seen as a way to boost exports for American companies, while also benefiting Japan by reducing the cost of imports.