Trump confirms US helped intervene to support the yen

President Donald Trump on Sunday confirmed that the United States had intervened to support the Japanese yen, describing the move as a "signal of friendship" that would financially benefit both the US and the world economy. His remarks came after the Financial Times reported on Friday that the US Treasury had jointly acted with Japan to prop up the yen for the first time in nearly three decades.

Speaking aboard Air Force One, Trump said the US acted because of its good relationship with Japan. He insisted that Washington would see financial benefit and that the move was also good for the global economy. However, he added that above all it was a sign of friendship. The president also said the US was very strong financially, while Japan had been facing a weakening yen and wanted some help, stressing that the US would always stand by Japan.

According to the Financial Times, the Federal Reserve Bank of New York took the unusual step of selling euros to buy yen on behalf of the US Treasury on Friday. The intervention followed the yen's slide to 163.24 per dollar last month, its weakest level since 1986, driven by higher US interest rates, rising oil prices and persistent capital outflows.

The yen rebounded sharply last week, fueling speculation that Japanese authorities had also intervened in the currency market. Analysts cited by the FT estimated Japan's intervention may have totaled around 8.45 trillion yen ($52.8 billion), while the Nikkei business daily put the figure between 6 trillion and 7 trillion yen. The FT noted this was the first coordinated US-Japan effort to support the yen since 1998.