US Intervenes in Japan's Currency Market to Prop Up Yen

The US government has intervened in Japan's currency market for the first time in over a decade to prop up the yen, which has dropped to a 40-year low against the dollar. According to President Donald Trump, the move is 'a signal of friendship' and will benefit both countries financially.

The intervention, which was coordinated with the Japanese government, involves the US buying Japanese yen on behalf of the Treasury Department. This is in addition to the $20 billion bailout for Argentina last year and the capture of Venezuelan President Nicolás Maduro, which Trump cited as examples of successful US intervention.

Treasury Secretary Scott Bessent said that the US will 'not hesitate to participate in further joint intervention' if needed, and added that the move is intended to support Japan's efforts to correct the undervaluation of the yen. The exact amount of yen purchased by the US was not disclosed.