Summary
- Trump said the joint US-Japan intervention to support the yen was intended as a gesture of friendship toward Japan.
- He said last week’s joint intervention in the Tokyo and New York markets helped the yen rebound sharply against the dollar.
- The two governments’ coordination to defend the yen’s value is increasing pressure on investors betting on further yen weakness.
Forecast Trend Report by Period
President Donald Trump said a joint US-Japan currency intervention last week to support the yen was intended as a gesture of friendship toward Japan.
Trump told reporters aboard Air Force One on August 3 that Japan had asked for some help and the US was always ready to assist. “More than anything, this intervention was a sign of friendship,” he said, according to Bloomberg.
He also underscored the close ties between the two countries, saying Japan had always been very friendly to the US aside from the attack on Pearl Harbor.
Before Trump’s remarks, expectations had been building in foreign-exchange markets that the US and Japan could conduct additional joint intervention following last week’s action. The yen had rebounded sharply against the dollar after the two countries intervened together in the Tokyo and New York markets last week.
After Trump’s comments, however, the yen edged lower against the dollar.
Japan’s Ministry of Finance and the US Treasury Department are said to be coordinating at their closest level in decades to defend the yen’s value. That is increasing pressure on investors betting on further weakness in the Japanese currency.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.