Although President Donald Trump’s detractors are determined to portray him as a tyrant who stokes division around the world, nation after nation continues to celebrate closer relationships with the United States under Trump than at any point in recent memory.
That trend apparently applies to Japan, as a recent development between the two nations suggests.
According to Breitbart:
The U.S. moved to support Japan on Friday in their first joint action in 28 years to boost the yen after the struggling currency plunged to a four-decade low.
ADVERTISEMENTPresident Donald Trump applauded the historic intervention in the yen market as a “signal of friendship” that would financially benefit the U.S. and the wider global economy.
The full scope and scale of the joint operation is not known, but AFP reports it is the first since 2011 when the two countries — and other G7 members — sold yen to stop it rising after a huge earthquake.
Trump affirmed the concerted action aboard Air Force One saying “friendship” with Japan is “good for the world economy.”
News of the partnership sparked some social media discussion:
Fabulous.
— @GenXtopher (@GenXtophers) August 3, 2026
I’ll support Japan anytime, day or night.
Amazing people, amazing culture, and incredible industries. I’m very proud of how well the relations between our countries has flourished.
— Housatonic (@_housatonic) August 2, 2026
Here’s what Treasury Secretary Scott Bessent said:
The Trump Administration delivers for America's trusted partners. Economic security is national security. And the U.S.-Japan alliance is built on both.
Friday's coordinated foreign exchange actions countered disorderly yen movements.
Treasury remains attentive and in close…
— Treasury Secretary Scott Bessent (@SecScottBessent) August 2, 2026
Complete text below:
The Trump Administration delivers for America’s trusted partners. Economic security is national security. And the U.S.-Japan alliance is built on both.
ADVERTISEMENTFriday’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.
The FIMA Repo Facility is an important backstop. We would encourage it to be upsized in the coming months.
We 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.
Here’s some additional coverage, via CNBC:
Previous Japanese efforts to prop up the currency in 2022 and 2024 saw the BOJ sell dollars to buy the yen. While it is understood to have followed the same approach this time around, reports suggest the U.S. Treasury may have sold euros to buy yen instead.
ADVERTISEMENTIn any case, the greenback’s reaction on Monday has been modest.
ING markets head Chris Turner said the dollar’s resilience “probably owes to the unresolved issue of whether the Federal Reserve will hike in September.”
The specter of higher interest rates means the potential for higher yields, which boosts international demand for Treasurys.
HSBC added that a structural shift in the Bank of Japan’s underlying policies will be key to any sustained rally in the currency.
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And more context on the topic:
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