Why Trump says backing Japan's weakening yen will benefit the US

WASHINGTON, DC: President Donald Trump on Sunday, August 2, defended the United States' decision to support the Japanese yen, arguing the move would provide a "financial benefit" to America while reinforcing ties with one of its closest allies. His remarks came after the US and Japan confirmed they had jointly intervened in currency markets to stabilize the weakening Japanese yen.

Speaking to reporters aboard Air Force One, Trump said Japan had sought assistance as its currency weakened and maintained that the arrangement would ultimately serve US economic interests. The coordinated intervention marked the first joint action by Washington and Tokyo in more than a decade.

Trump says Japan yen support will deliver 'financial benefit' to US

When asked why the United States was intervening to support Japan's currency, Trump pointed to the longstanding alliance between the two countries.

"Because we have a good relationship with Japan. We're very strong, very, very strong financially. They have a weakening yen, and they wanted a little bit of help. And we're always there for Japan," Trump said, adding, "Japan's been very good to us, with the exception, of course, of Pearl Harbor."

When pressed on what the United States would receive in return, Trump rejected suggestions that the move was one-sided. "Financial benefit. Financial benefit. And we also, it's also good for the world economy."

The president also defended his broader economic record, citing previous agreements he said generated returns for the United States. "What we did with Argentina, I got criticized. We made $25 billion on that deal. On Venezuela, we made hundreds of billions of dollars. I make good deals."

Trump also pointed to what he described as the administration's successful backing of Intel as an example of what he called profitable economic decisions. "I made $75 billion for the country. I didn't make for me, I made for the country," he said.

Trump calls yen intervention a 'signal of friendship' with Japan

Trump said the intervention was not only an economic measure but also a demonstration of the US-Japan alliance.

"Japan wanted to, it was really, more than anything else, it was a signal of friendship. Because the yen is weakening, and the dollar is doing great. The fact is, our country is doing great. Everybody wants help from our country."

The comments came after Japan's Finance Ministry and the US Treasury confirmed they had jointly intervened to support the yen after it fell to a fresh 40-year low against the dollar. It marked the first coordinated currency intervention by the two countries since 2011, when they acted following the earthquake and tsunami in eastern Japan.

Treasury Secretary Scott Bessent said the coordinated action was intended to counter "disorderly" movements in the yen and reiterated that Washington supported Japan's efforts to address what it described as the currency's substantial undervaluation.

Japanese officials said the intervention was designed to curb excessive volatility in foreign exchange markets, while economists have attributed the yen's prolonged weakness largely to the wide interest-rate gap between Japan and the United States.