Japan, US intervene to prop up yen after 40-year lows; Trump says it's a 'signal of friendship'

Japan and the US conducted their first coordinated yen-buying intervention since 2011, confirmed by Japan's Finance Ministry on Monday.

The intervention targeted the yen's fall to near 40-year lows (around 164 yen per dollar), with the dollar easing to 157.07 yen after the move.

President Donald Trump described the intervention as a 'signal of friendship' and said Washington was 'always there for Japan'.

Japan's Finance Minister Satsuki Katayama warned that Tokyo was prepared to conduct further joint intervention if market volatility continued.

The coordinated action follows the Bank of Japan's strongest signal yet of a possible rate hike, as the weak yen has fueled inflation and squeezed household budgets.