US-Japan Trade Tensions Eased by Rare Yen Intervention

A rare joint intervention by the US and Japan has stabilized the yen, providing a near-term boost to their relations.

The move came after the Japanese currency hit a four-decade low of nearly 164 yen to the US dollar in the wake of months of aggressive trade negotiations between Washington and Tokyo.

As part of the intervention, the US purchased yen for the first time since 1998, helping to lift its value to a three-month high of 155.2 yen per US dollar on Friday.

The operation appears to have aligned the interests of both countries, with Washington seeking to prevent a widening trade deficit and Tokyo focused on preventing a slide in the yen that could fuel inflation and rattle the bond market.