US President Donald Trump says serving to to bolster the Japanese foreign money is an indication of friendship.
Printed On 3 Aug 2026
Japan and the US have confirmed a uncommon, coordinated yen-buying intervention to halt the Japanese foreign money’s slide to 40-year lows, with Tokyo signalling it’s keen to take additional motion if wanted.
The Japanese Ministry of Finance confirmed the joint intervention after a press release by US President Donald Trump on Sunday introduced that Washington was serving to to prop up the yen as an indication of friendship and to help the worldwide economic system.
“They’ve a weakening yen, they usually wished slightly little bit of assist. And we’re at all times there for Japan,” Trump mentioned in response to a reporter’s question about why the US helps to help the foreign money.
Analysts say the intervention underscores each international locations’ resolve to forestall world spillovers from a sell-off within the yen and Japanese authorities bonds, together with by including stress on already rising US Treasury yields.
The greenback fell 0.2 % to 157.07 yen after Trump’s remarks, nicely off the 40-year excessive close to 164 yen hit late final month, nevertheless it rose again to 157.70 yen after the Japanese Finance Ministry’s assertion.
Japan has been struggling to curb a relentless drop in its foreign money that pushes up import costs and stokes broader inflation, hitting family wallets and Prime Minister Sanae Takaichi’s approval scores.
In its assertion, Japan’s Finance Ministry mentioned Friday’s yen-buying intervention with the US Treasury Division “countered extreme volatility and disorderly actions within the Japanese yen in latest months”.
“The Japanese Ministry of Finance stays attentive and in shut communication with our counterparts on the U.S. Treasury,” it added. “We is not going to hesitate to conduct additional joint intervention.”
The joint intervention is the primary since a 2011 coordinated motion to weaken the yen after the devastating earthquake in japanese Japan.
Tokyo might have bought as a lot as $58.97bn to purchase yen when it intervened in New York markets on Thursday, Financial institution of Japan knowledge indicated, earlier than Friday’s confirmed joint intervention with Washington.
US Treasury Secretary Scott Bessent additionally confirmed Friday’s effort, noting on Sunday that Washington “is not going to hesitate to take part in additional joint intervention”.
“We strongly help Japan’s decisive market and financial steps to appropriate the substantial undervaluation of the yen,” Bessent mentioned in a separate assertion on X, repeating his requires additional rate of interest hikes by the Financial institution of Japan.
Consistent with Bessent’s repeated requires increased Japanese rates of interest, the Financial institution of Japan on Friday provided its most specific sign thus far of an early charge hike, even because it saved financial coverage regular.
In an indication of broader coverage coordination, South Korea additionally stepped in to purchase its received foreign money on Thursday.
Japan intervened in April and Might, shopping for yen, however the transfer triggered solely a short rebound. The Financial institution of Japan’s June charge hike to a 31-year excessive of 1 % additionally gave the struggling foreign money little lasting increase.
