Japan and the United States said Monday they were ready to act again following their first joint action in 28 years to boost the yen, after the beleaguered currency hit a four-decade low.
The yen has been weakening because of the gap between Japanese and US interest rates — fuelling the yen “carry trade” by investors — as well as concerns about Japan’s colossal debts under new Prime Minister Sanae Takaichi.
The scale of Friday’s joint operation was not known, but it was the first since 2011 when the United States and Japan — and other G7 members — sold yen to stop it rising after a huge earthquake.
The last time Washington and Tokyo bought yen was 1998, Japan’s finance minister said.
US President Donald Trump confirmed the concerted action aboard Air Force One on Sunday Washington time, calling it a “signal of friendship” with Japan and “good for the world economy”.
