On Sunday, August 2nd, 2026, President Donald Trump confirmed that the United States had intervened to support the Japanese yen, calling the move a "signal of friendship" that would financially benefit both the US and the global economy. The intervention marked the first coordinated effort between Washington and Tokyo to back the yen in nearly three decades.

The Financial Times reported that the US Treasury had worked jointly with Japan to prop up the yen, with the Federal Reserve Bank of New York taking the unusual step of selling euros to buy yen on behalf of the US Treasury on the preceding Friday. This action came after the yen fell to 163.24 per dollar last month, its weakest level since 1986, pressured by higher US interest rates, rising oil prices, and persistent capital outflows.

Asked aboard Air Force One why the US was supporting Japan's currency, Trump said, "Because we have a good relationship with Japan." He added that the US would see "financial benefit" from the move and that "it's also good for the world economy," but emphasized it was primarily a "signal of friendship."

Trump also remarked, "Japan's been very good to us, with the exception, of course, of Pearl Harbor," highlighting the longstanding ties between the two nations.

According to the Financial Times, this intervention represents the first coordinated US-Japan effort to support the yen since 1998.

Sources