US and Japan take action to prop up yen in rare joint move

That makes the Japanese currency less attractive to international investors.The Bank of Japan last raised interest rates in June, as it increased its main rate to 1% - the highest level since September 1995. In comparison, the US Federal Reserve's benchmark rate is in a range of 3.50% to 3.75%.Japan also faces other issues including a decades-long slide in its working-age population, low productivity and a heavy reliance on energy imports that are priced in US dollars.On Monday, Japan's finance ministry said Friday's intervention with the US Treasury Department "countered excessive volatility and disorderly movements in the Japanese yen in recent months".The "coordinated foreign exchange actions countered disorderly yen movements," Bessent said in a social media post."We strongly support Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen," he added."They have a weakening yen, and they wanted a little bit of help. And we're always there for Japan," US President Donald Trump told reporters on Sunday.The dollar fell by 0.2% to 157.07 yen after Trump's comments, well off the 40-year high of 164 last month, but rose back to 157.70 yen after the Japanese finance ministry's statement.Additional reporting by Osmond ChiaRelated topicsInternational BusinessJapanUnited StatesUS Dollar (USD)Japanese Yen (JPY)