"Yen" Wins Support from Tokyo and Washington

Washington and Tokyo have jointly intervened in currency markets to prop up the Japanese yen, a move not seen in 28 years. The intervention, the first joint U.S.-Japan effort since 1998 to buy yen, occurred as the currency plummeted to its lowest level in four decades against the dollar, reaching 164 yen. This marks the weakest point for the yen since 1986.

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The United States will reap a "financial benefit" from this decision, which was primarily... a gesture of friendship.

The significant depreciation is attributed to widening interest rate differentials between Japan and the United States, alongside concerns regarding Prime Minister Sanae Takaichi's economic and budget policies. The U.S. Treasury Department affirmed its commitment to further joint interventions if needed. Secretary of the Treasury Scott Bessent stated on X that the U.S. would not hesitate to participate in new joint actions.

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We are in a very, very strong financial position. They have a weakening yen, and they were in need of a little help. We are always with Japan.

U.S. President Donald Trump commented on the intervention from his presidential aircraft, describing it as a "financial benefit" for the U.S. and primarily a "gesture of friendship." He emphasized America's strong financial position and Japan's need for assistance with its weakening yen, reiterating U.S. support for its ally.

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We will not hesitate to participate in new joint interventions.

Japanese Finance Minister Satsuki Katayama welcomed the joint action, stating it helped curb excessive volatility and the uncontrolled path of the yen in recent months. She also acknowledged Washington's praise for Japan's efforts to revive and stimulate its economy. Bessent added that the U.S. government strongly supports Tokyo's decisive monetary and market measures to correct the yen's significant undervaluation.

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This joint action... allowed to curb excessive volatility and the uncontrolled path of the yen in recent months.