US and Japan Jointly Intervene to Boost Yen from 40-Year Low

In an unusual joint effort, the United States and Japan stepped into the foreign exchange market to bolster the Japanese yen, which had plummeted to a 40-year low. This marked the first collaborative yen-buying initiative since 1998, resulting in the yen climbing to 155.23 against the US dollar, its highest point since early May, as reported by Chinese financial data provider Wind. President Donald Trump characterized this action as "a signal of friendship" during an Air Force One interview on Sunday, reiterating that the US is "always there for Japan." Treasury Secretary Bessent also indicated on social media that the US "will not hesitate to participate in further joint intervention." This intervention follows the yen's extended decline, raising concerns in both nations. Analysts believe Japan aimed to capitalize on a favorable moment for intervention, while the US sought to mitigate selling pressure on US Treasuries. The yen's strength may impact markets in mainland China and Hong Kong, affecting regional currencies and trade. This intervention signifies a notable shift in US-Japan economic collaboration, highlighting both countries' readiness to jointly stabilize currency markets.