The United States on Sunday confirmed its first intervention in Japan’s currency market in more than a decade, buying Japanese yen in a coordinated effort to support the currency after it fell to a 40-year low against the US dollar.
President Donald Trump described the move as “a signal of friendship” toward Japan.
“They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan,” Trump told reporters aboard Air Force One.
The intervention followed reports that the Federal Reserve Bank of New York, acting on behalf of the US Treasury Department, sold euros to purchase yen in coordination with Japanese authorities.
Treasury Secretary Scott Bessent said the joint action was intended to curb excessive volatility in the foreign exchange market, adding that Washington “will not hesitate to participate in further joint intervention” if necessary.
Japan’s Finance Ministry said the operation was aimed at addressing “excessive volatility and disorderly movements” in the yen and confirmed that Tokyo remains in close coordination with the United States.
Trump said supporting the yen would benefit the global economy and claimed the intervention would also generate financial gains for the United States, though he did not explain how.
The operation marks the first joint US-Japan currency intervention since 2011, when G7 countries coordinated efforts to stabilise the yen following Japan’s devastating earthquake and tsunami.