US Treasury Intervenes to Support Japanese Yen in Show of Friendship with Tokyo

US Treasury and Federal Reserve Bank of New York intervene to support Japanese yen for first time in nearly three decades. The move, confirmed by President Donald Trump on Sunday, is seen as a 'signal of friendship' between the two nations.

The intervention came after the yen slid to its weakest level since 1986, with analysts estimating Japan's total intervention at around 8.45 trillion yen ($52.8 billion). The US Treasury and Federal Reserve Bank of New York sold euros to buy yen on behalf of the US Treasury on Friday.

Trump stated that the move will provide 'financial benefit' for the US and world economy, but emphasized it was primarily a gesture of goodwill towards Japan. He noted that the US has a good relationship with Japan and that this intervention is a way to help their ally.