The United States has moved to back the Japanese yen after the currency plunged to a new low.
Explaining the new relationship, President Trump said, “We have a good relationship with Japan, we’re very strong, very, very strong financially. They have a weakening yen and they wanted a little bit of help, and we’re always there for Japan. Japan has been very good to us — with the exception, of course, of Pearl Harbor.”
He noted that the United States stands to gain financially from the development. “It’s also good for the world economy,” President Trump added.
He went on to compare the deal to one his administration previously made with Argentina, which has since repaid the United States.
“The Trump Administration delivers for America’s trusted partners. Economic security is national security. And the U.S.-Japan alliance is built on both,” Treasury Secretary Scott Bessent said in a statement. “Friday’s coordinated foreign exchange actions countered disorderly yen movements.”
“Treasury remains attentive and in close communication with our counterparts at MOF and BOJ. We will not hesitate to participate in further joint intervention,” he explained. “The FIMA Repo Facility is an important backstop. We would encourage it to be upsized in the coming months.”
Bessent noted that the United States will “strongly support Japan’s decisive market and monetary steps to correct the substantial undervaluation of the yen.”
“The Takaichi government is moving into an exciting new phase of Abenomics, as nearly 15 years of powerful stimulus have created durable, robust underlying economic dynamics.”
