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US intervened to support yen as 'gesture of friendship' to Japan: Trump
🇨🇭 Switzerland /Economy & Trade

US intervened to support yen as 'gesture of friendship' to Japan: Trump

From Le Temps · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The United States intervened to support the Japanese yen, a move President Donald Trump described as a "gesture of friendship" towards Japan.
  • This coordinated intervention, involving the Federal Reserve Bank of New York and Japan's Treasury, marks the first such direct currency support in nearly 30 years.
  • The action aimed to counter excessive volatility in the yen, which had reached its lowest levels against the dollar since 1986.

President Donald Trump confirmed on Sunday that the United States intervened to support the Japanese yen, calling it a "gesture of friendship" toward Japan that would also benefit the global economy. Speaking aboard Air Force One, Trump stated the U.S. would see a "financial advantage" from the decision but emphasized its primary purpose was goodwill.

Because we have a good relationship with Japan. We are very, very strong financially. They, you know, they have a weakening yen and they needed a little help. And we are always there for Japan. Japan has been very good to us, except of course for Pearl Harbor.

— Donald TrumpPresident of the United States, explaining the rationale behind the currency intervention.

"We are very, very strong financially. They, you know, they have a weakening yen and they needed a little help. And we are always there for Japan. Japan has been very good to us, except of course for Pearl Harbor," he added. This intervention is the first coordinated effort between the U.S. and Japan to support the Japanese currency in almost three decades, according to anonymous sources cited by the Financial Times.

The intervention coincided with a sharp rise in the yen, which had fallen to its lowest levels against the dollar since December 1986 in July, largely due to interest rate differentials between Japan and the U.S. Japan's Finance Minister Satsuki Katayama confirmed the joint intervention, stating her ministry "bought yen in coordination with the U.S. Treasury Department" on Friday.

This action... helped counter excessive volatility and disorderly movements of the yen in recent months... We will not hesitate to conduct further joint interventions.

— Satsuki KatayamaJapan's Finance Minister, commenting on the success of the joint intervention.

"This joint action... helped counter excessive volatility and disorderly movements of the yen in recent months... We will not hesitate to conduct further joint interventions," Katayama said in a statement. U.S. Treasury Secretary Scott Bessent echoed this sentiment on X, citing economic security and the U.S.-Japan alliance as reasons for the decision.

We will not hesitate to participate in new joint interventions.

— Scott BessentU.S. Treasury Secretary, affirming future coordinated actions.
DistantNews Editorial

Originally published by Le Temps in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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