US Steps In to Support Yen in Rare Bilateral Intervention
The US has stepped in to buy Japanese yen for the first time in over a decade. According to President Donald Trump, this intervention is a 'signal of friendship' aimed at propping up the yen from its 40-year low against the dollar.
The move was confirmed by Trump on Sunday and was designed to counter excessive volatility and disorderly movements in the Japanese currency market. The US has interests in shoring up the yen because a stronger dollar makes American exports pricier for foreign consumers, while a weak yen benefits Japanese exporters but increases the cost of imports like oil and gas, fueling inflation.
Japan's Finance Minister Satsuki Katayama stated that the intervention 'countered excessive volatility' in the yen market. The US Treasury Department has been actively involved in this move, with Treasury Secretary Scott Bessent noting that they 'will not hesitate to participate in further joint intervention.'