The United States has intervened in the foreign exchange market to purchase the Japanese yen for the first time in more than a decade, joining Japan in a coordinated effort to stabilize the currency after it fell to its weakest level against the U.S. dollar in 40 years.
U.S. President Donald Trump described the move as a “gesture of friendship” toward Japan, saying Washington acted in response to Tokyo’s request for support as the yen came under mounting pressure.
Speaking to reporters aboard Air Force One, Trump said the United States “is always there for Japan” and argued that supporting the Japanese currency would benefit both the global economy and U.S. financial interests.
Earlier, the Financial Times reported that the Federal Reserve Bank of New York, acting on behalf of the U.S. Treasury Department, sold euros and purchased yen as part of the coordinated intervention.
U.S. Treasury Secretary Scott Bessent said in a post on X that Washington and Tokyo jointly entered the currency market on Friday to curb excessive volatility in the yen.
He added that the United States would not hesitate to undertake similar coordinated interventions in the future if market conditions warranted.
Japan’s Ministry of Finance said the joint action was aimed at preventing disorderly market movements and excessive fluctuations in the yen. The ministry added that Tokyo remains in close contact with U.S. authorities and stands ready to participate in further coordinated interventions if necessary.
The intervention followed the yen’s sharp depreciation to its lowest level against the dollar since the mid-1980s, raising concerns over financial stability and the impact of a weaker currency on Japan’s economy.
The coordinated action marks a rare instance of direct U.S. involvement in supporting the Japanese currency. The last major multinational intervention involving the yen took place in 2011, when the Group of Seven (G7) countries and the Bank of Japan jointly sold yen after it surged in the aftermath of the devastating earthquake and tsunami.
The latest move underscores growing cooperation between Washington and Tokyo in addressing heightened volatility in global financial markets.
Source: Anadolu Agency