Japan and US confirm rare joint intervention to prop up yen

US President Donald Trump says helping to bolster the Japanese currency is a sign of friendship.Japan and the United States have confirmed a rare, coordinated yen-buying intervention to halt the Japanese currency’s slide to 40-year lows, with Tokyo signalling it is willing to take further action if needed.The Japanese Ministry of Finance confirmed the joint intervention after a statement by US President Donald Trump on Sunday announced that Washington was helping to prop up the yen as a sign of friendship and to support the global economy.“They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan,” Trump said in response to a reporter’s query about why the US is helping to support the currency.Analysts say the intervention underscores both countries’ resolve to prevent global spillovers from a sell-off in the yen and Japanese government bonds, including by adding pressure on already rising US Treasury yields.The dollar fell 0.2 percent to 157.07 yen after Trump’s remarks, well off the 40-year high near 164 yen hit late last month, but it rose back to 157.70 yen after the Japanese Finance Ministry’s statement.Japan has been struggling to curb a relentless drop in its currency that pushes up import prices and stokes broader inflation, hitting household wallets and Prime Minister Sanae Takaichi’s approval ratings.In its statement, Japan’s Finance Ministry said Friday’s yen-buying intervention with the US Treasury Department “countered excessive volatility and disorderly movements in the Japanese yen in recent months”.“The Japanese Ministry of Finance remains attentive and in close communication with our counterparts at the U.S. Treasury,” it added. “We will not hesitate to conduct further joint intervention.”