Japan and the United States have confirmed a rare, coordinated intervention to buy yen and halt the currency's decline to 40-year lows, with Japan indicating readiness for additional measures if necessary. The Japanese Ministry of Finance announced the joint action following US President Donald Trump's statement that Washington was assisting to prop up the yen as a sign of friendship and to support the global economy.

President Trump said, “They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan.” After his remarks, the dollar fell 0.2 percent to 157.07 yen, down from a 40-year high near 164 yen hit late last month, before rising back to 157.70 yen following the Japanese Finance Ministry’s statement.

In its announcement, Japan’s Finance Ministry said Friday’s yen-buying intervention with the US Treasury Department aimed to “counter excessive volatility and disorderly movements in the Japanese yen in recent months.” This joint intervention marks the first since 2011, when coordinated action was taken to weaken the yen after the devastating earthquake in eastern Japan.

Bank of Japan data suggested Tokyo may have sold as much as $58.97 billion to buy yen during intervention in New York markets on Thursday, prior to Friday’s confirmed joint intervention with Washington.

Economist Bessent expressed strong support for Japan’s market and monetary steps to address the yen’s undervaluation, calling for further interest rate hikes by the Bank of Japan.

Sources