US-Japan trade thaw driven by shared yen for stronger currency
A rare joint intervention to stabilise the yen has given US-Japan relations a near-term lift, according to analysts. But whether that goodwill endures depends on how long the currency’s rebound can survive mounting market and policy pressures. Friday’s operation, Washington’s first yen purchase since 1998, came after the Japanese currency had slumped to a four-decade low of almost 164 yen to the…
A rare joint intervention by the United States and Japan to stabilize the yen has improved relations between the two countries, according to analysts. The intervention, for the first time in 1998, took place after the Japanese currency fell to a four-decade low of nearly 164 yen to the US dollar. US President Donald Trump expressed his support for the move, signaling a more positive turn in US-Japan relations after months of trade negotiations.
Analysts suggest that a stronger yen would be advantageous for Japan, allowing it to buy more American goods and invest in the US. However, the long-term effects of the intervention remain uncertain as market and policy pressures persist.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
