US Intervenes in Japanese Currency Market with Bilateral Yen Purchase
US President Donald Trump announced on Sunday that his country would be buying Japanese yen for the first time in over a decade. The move is intended to prop up the yen, which has been at a 40-year low against the dollar.
The intervention was described by Trump as 'a signal of friendship' and 'good for the world economy.' He cited past US actions, including a $20 billion bailout for Argentina and efforts to capture Venezuelan President Nicolás Maduro, as examples of how US intervention can bolster other countries' economies.
Treasury Secretary Scott Bessent said that the US and Japan coordinated foreign exchange actions on Friday to counter disorderly yen movements. He added that the Treasury Department 'will not hesitate to participate in further joint intervention.'