US and Japan Act to Strengthen Weak Yen
The United States and Japan worked together to support Japan's currency the yen. This rare joint action happened on Friday July 31.
By Monday the yen had gotten stronger. The yen reached 155 to the US dollar on Monday.
That is its highest level since early May. Before the action the yen was near 163 to the dollar.
That was its weakest level in 40 years. After the action it moved to 157 to the dollar.
Some reports call this the first joint US-Japan action in 15 years. Other reports say it is the first since 2011.
President Trump called the US help a sign of friendship. He said Japan had a weakening yen and wanted help.
Both governments say they are ready to act again if needed. The move shows how much impact joint action can have on currency values.
Key Terms 2
- yen Japan's money currency used for prices and trade.
- intervention When governments act directly to change a currency's value.