US Intervenes in Japanese Yen Market for First Time in Over a Decade

The United States government has intervened in Japan's foreign exchange market for the first time in over a decade, purchasing Japanese yen on August 2. This move was aimed at supporting the yen after it fell to its weakest level against the US dollar in four decades.

Speaking about the intervention, President Donald Trump described it as 'a gesture of friendship' and noted that Japan had always treated the US well, except for the Pearl Harbor incident.

The Treasury Department sold euros on behalf of the US to purchase Japanese yen, with Treasury Secretary Scott Bessent stating that the coordinated action was intended to curb excessive volatility in the exchange rate. The operation marked the first coordinated currency market intervention by the US and Japan since 2011.