US Steps In to Bolster Japan's Yen Amid Record Low

The US Treasury Department has intervened in Japan's currency market for the first time in over a decade to prop up the yen, which has reached a 40-year low against the dollar. President Donald Trump said the move is 'a signal of friendship' and would be beneficial for the global economy.

According to a Reuters photograph, Treasury Secretary Scott Bessent wrote on his notepad at a cabinet meeting that the US planned to buy Japanese yen worth $5-10 billion. The intervention was designed to counter excessive volatility in the yen's value, which has been exacerbated by the ongoing Iran war and increased energy costs.

The US has interests in supporting the yen because a stronger dollar makes American exports more expensive for foreign consumers. A weak yen also increases Japan's cost of imports, including oil and gas, fueling inflation. Trump said that supporting the yen would benefit both countries financially.