The United States and Japan executed a coordinated intervention in foreign exchange markets last week, with the U.S. Treasury purchasing Japanese yen to stabilize the rapidly weakening currency.
President Trump confirmed the purchase, marking the first time in 30 years the United States has intervened to strengthen a foreign currency. Reports put the intervention's value at between $5 billion and $10 billion.
Treasury Secretary Scott Bessent said the coordinated foreign exchange actions countered disorderly yen movements. He added that the United States strongly supports Japan's decisive steps to correct the substantial undervaluation of the yen.
Japan's finance ministry confirmed the intervention, saying the move countered excessive volatility and disorderly movements in the Japanese yen in recent months.
Following the intervention, the yen strengthened to ¥155 to the U.S. dollar on Monday, its highest level since early May.
Trump said Japan had requested assistance with its weakening currency. "They have a weakening yen, and they wanted a little bit of help," he said. He added the intervention would be "good for the world economy."
Some analysts say the Trump administration's involvement reflects concern that Japan's unilateral efforts to strengthen the yen could raise U.S. government borrowing costs by pulling Japanese capital away from U.S. Treasury markets.
