US and Japan intervened together to support the yen: Trump

The United States and Japan have jointly intervened to support the Japanese yen, a move President Donald Trump called a "signal of friendship" that will bring financial benefits to both the U.S. and global economies. This marks the first coordinated intervention in nearly three decades.

Speaking aboard Air Force One, Trump stated the U.S. intervened because "we have a good relationship with Japan." He added that while the U.S. will gain financially, the primary motivation was friendship. "We are very strong, very, very strong financially. They have a falling yen and they wanted a little help. And we are always with Japan. Japan has behaved very well with us, except, of course, for Pearl Harbor," the president remarked.

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Because we have a good relationship with Japan. ... It was, above all else, a signal of friendship.

According to the Financial Times, citing sources close to the matter, the New York Federal Reserve took the unusual step of selling euros to buy yen on behalf of the U.S. Treasury. This action followed the yen's drop to its weakest level against the dollar since 1986, pressured by higher U.S. interest rates, rising oil prices, and persistent capital outflows.

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This joint action... countered the excessive volatility and disorderly movements of the Japanese yen in recent months. We will not hesitate to carry out new joint interventions.

Japanese Finance Minister Satsuki Katayama confirmed the joint intervention, stating the ministry "bought yen on Friday, in coordination with the U.S. Treasury Department." She added that this "joint action... countered the excessive volatility and disorderly movements of the Japanese yen in recent months" and that "we will not hesitate to carry out new joint interventions."

U.S. Treasury Secretary Scott Bessent echoed this sentiment on X, noting that the coordinated actions countered the yen's disorderly movements and that Washington "will not hesitate to participate in new joint interventions," citing economic security and the U.S.-Japan alliance as reasons.

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Washington will not hesitate to participate in new joint interventions.