U.S. President Donald Trump said the United States intervened to buy yen because of its strong relationship with Japan, describing the action as a sign of friendship and pledging that Washington would always support the country.
Japan and the United States conducted coordinated yen-buying intervention in the foreign exchange market to curb the currency's excessive decline, with Finance Minister Satsuki Katayama expected to announce the move on August 3, according to people familiar with the matter.
US Treasury Secretary Scott Bessent said the yen is undervalued, making an unusually direct assessment of the currency and signaling that Washington is unwilling to accept excessive weakness.
Prime Minister Sanae Takaichi announced that Japan will cut the consumption tax rate on food and beverages to 1% from April 2027, pledging to secure the necessary funding without relying on deficit-financing bonds and to restore the rate to 8% after two years.
Prime Minister Sanae Takaichi moved on July 30 to turn food-tax relief from a campaign promise into government policy, instructing the ruling Liberal Democratic Party to proceed with a temporary cut in the sales tax on food as the Bank of Japan began a policy meeting that could shape the next phase of Japan’s currency, inflation and fiscal debate.
Prime Minister Sanae Takaichi moved closer on July 29 to adopting a sharp temporary cut in Japan’s food sales tax, turning cost-of-living relief into the next major political test for her government as markets remained uneasy over the weak yen, rising bond yields and the administration’s expansionary fiscal agenda.
Prime Minister Sanae Takaichi’s government moved on July 28 to reassure investors that it respects the Bank of Japan’s independence, as Finance Minister Satsuki Katayama said relations between the government and the central bank remain smooth despite market concern over rising bond yields, yen weakness and the administration’s growth-oriented fiscal agenda.
Prime Minister Sanae Takaichi entered the final week of July facing the sharpest political test of her administration so far, as a fall in public support exposed growing unease over the weak yen, rising living costs and doubts about whether her growth strategy can reassure both households and financial markets.