U.S. Senator Bill Hagerty, a Republican, posted today (August 3): "The U.S.-Japan alliance is one of America's most important strategic assets. I commend Treasury Secretary Scott Bessent and the U.S. Department of the Treasury for their close collaboration with Japan's Ministry of Finance, working together to promote stable and orderly market operations. This tight coordination underscores the strength of our alliance and helps advance peace, security, and stability throughout the region."
The Japanese Ministry of Finance confirmed that Japan and the United States jointly bought yen last week, stating that the two countries would not hesitate to take further action, saying this move "aims to address recent excessive volatility and disorderly movements in the yen." On Air Force One, when reporters asked Trump why the U.S. was helping prop up the yen, he replied: "The yen is weakening, and they need a little help. And we will always support Japan."
Comments: The U.S. stepping in to support the yen is not merely out of alliance sentiment—it is also to prevent Japan from selling off U.S. Treasuries, which could raise U.S. borrowing costs and destabilize U.S. financial markets. If Japan were to act alone to defend the yen, it would risk dumping U.S. debt, directly impacting the U.S. bond market. This incident clearly reveals the double standards in exchange rate rules: when other countries intervene in their own currency’s value, the U.S. often accuses them of manipulation and undermining fairness; yet when the U.S. and Japan jointly enter the market, it is framed as maintaining market order. The interpretive power over these rules lies firmly in American hands, ultimately serving U.S. financial and alliance interests.
Original source: toutiao.com/article/1872475372987659/
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