The United States and Japan intervened in the foreign exchange market simultaneously to curb the rapid decline of the yen. President Donald Trump stated that the U.S. bought yen to support Japan.
On August 2, local time, Trump spoke to reporters while returning to Washington, D.C., from Bedminster, New Jersey. He said, "Japan needed help as the yen was showing weakness. We are always here for Japan."
The U.S. Treasury reportedly sold euros and bought yen through the New York Federal Reserve on July 31. Japanese authorities also intervened by selling dollars to purchase yen.
The scale of Japan's intervention is estimated to be as much as $58.97 billion, or about 8.2 trillion yen. The amount of yen purchased by the U.S. has not been disclosed.
However, a note from Treasury Secretary Scott Vessenet, taken during a meeting chaired by Trump on the same day, indicated a range of "$5 billion to $10 billion" for the Japanese yen.
Before the intervention, the yen approached a 40-year low, nearing 164 yen per dollar. Following the coordinated actions by U.S. and Japanese authorities, the yen rebounded to around 157 yen per dollar.
* This article has been translated by AI.
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