US Supports Yen with 'Signal of Friendship' Intervention
US President Donald Trump confirmed on Sunday that the United States had intervened to support the Japanese yen, calling it 'a signal of friendship' that would benefit both countries and the global economy. The intervention came after the yen slid to its weakest level since 1986, reaching 163.24 per dollar last month due to higher US interest rates, rising oil prices, and persistent capital outflows.
According to a report by the Financial Times, the US Treasury jointly intervened with Japan to prop up the yen for the first time in nearly three decades. Trump stated that the move was 'really more than anything else, it was a signal of friendship' and would financially benefit the US.
The intervention has sparked speculation about the extent of Japan's involvement, with analysts estimating that the country may have intervened to the tune of 8.45 trillion yen ($52.8 billion) or between 6 trillion and 7 trillion yen, depending on the source.