The Trump administration has intervened to support the Japanese yen, marking a significant move to stabilize the currency following its slide to a 40-year low against the dollar. The intervention, a joint effort by the U.S. and Japanese governments, involved buying sums of the currency on Friday.
This coordinated action sent the yen to its strongest position against the dollar since mid-May as of Monday afternoon. According to the Financial Times, the Federal Reserve Bank of New York sold euros to purchase yen as part of the exchange. Treasury Secretary Scott Bessent noted on Sunday via X that "Friday's coordinated foreign exchange actions countered disorderly yen movements," adding that the U.S. "would not hesitate" to engage in similar interventions in the future. A notepad seen in front of Bessent during a Friday Cabinet meeting at Camp David reportedly included the notation "$5-10 bil," possibly indicating the scale of the planned intervention.
President Donald Trump, when asked about the U.S. intervention on Sunday, stated that the action was taken "Because we have a good relationship with Japan." He explained that "They have a weakening yen, and they wanted a little bit of help," and that "we're always there for Japan." Trump then added a historical reference, remarking, "Japan's always very good to us, with the exception, of course, of Pearl Harbor."
The bombing of the U.S. naval base at Pearl Harbor in December 1941 led to the U.S. entering World War II. Despite this historical event, Japan and the United States have developed a close alliance in the postwar era. This was reportedly the first joint U.S.-Japan intervention on the yen since 2011, and the first joint currency buy since 1998. The yen's diminished value has been attributed to several factors, including the unusually low interest rates set by Japan's central bank.
This is not the first time Trump has referenced the Pearl Harbor attack in relation to Japan. During a previous public meeting with Japanese Prime Minister Sanae Takaichi, Trump made a similar quip. When questioned about U.S. attacks on Iran without consulting allies, Trump suggested he wanted to preserve surprise, quipping, "Who knows better about surprise than Japan?" He jokingly complained that he had not been informed about Pearl Harbor in advance. Such references are typically avoided in public discourse between politicians and diplomats of both nations. Takaichi, who has previously received Trump's endorsement, reportedly reacted with subdued composure to his remarks.