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U.S. joins Japan intervention to support a sharply weaker yen
The coordinated action followed the yen’s slide to about ¥164 per US dollar before rebounding to around ¥156 after intervention, highlighting a direct exchange-rate impact on US costs for imports like Japanese vehicles.
Washington and Tokyo took a rare coordinated step to support the Japanese yen after it weakened to roughly 40-year lows near ¥164 per US dollar, the latest move underscoring how currency moves can quickly spill into import prices, according to Yahoo Finance.
The US intervention came alongside Japan, with Treasury Secretary Scott Bessent saying the Trump administration would do "whatever it takes" to continue supporting the yen.
After the intervention on Friday, the yen rebounded to around ¥156 per US dollar, after having fallen to the weaker level earlier in the period.
Yahoo Finance also notes that exchange-rate changes can influence what Americans pay for imported goods, illustrating the point with an example of a Japanese-made Toyota selling for ¥4.5 million, which would translate to about $27,400 at ¥164 per dollar versus roughly $30,000 at ¥150 per dollar, a difference of about 9.5% attributable to the exchange rate alone.