Japan and United States conduct joint yen-buying intervention

Japan and the United States have jointly stepped into currency markets to stop the yen from falling further. The yen had dropped to its lowest level in 40 years. Japan spent around $59 billion buying yen in New York on Thursday, August 1. The US Treasury then joined the effort on Friday. President Trump confirmed American involvement on Sunday, August 3. The two countries last worked together like this in 2011, after Japan's earthquake. Japan's finance ministry said both governments will act again if the yen continues to weaken. South Korea also intervened in currency markets on the same Thursday. Officials from both countries were worried that a very weak yen could push up borrowing costs in the United States and cause wider economic problems globally.