Japan and US confirm rare joint intervention to prop up yen | Business and Economy News
Japan and U.S. Conduct Joint Yen-Buying Intervention Amid Currency Decline
Published on August 3, 2026
TOKYO — Japan and the United States confirmed a coordinated intervention on Friday to purchase yen in response to the currency’s slide to a 40-year low. The Japanese government indicated its readiness to take further actions if necessary.
The Japanese Ministry of Finance announced the joint intervention following a statement from U.S. President Donald Trump, who described the effort as a demonstration of friendship and support for the global economy. “They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan,” Trump said in a press briefing regarding the U.S. support.
Analysts note that this intervention highlights both countries’ commitment to mitigating potential global repercussions stemming from a decline in the yen and Japanese government bonds, particularly amidst rising U.S. Treasury yields.
Following Trump’s remarks, the dollar depreciated by 0.2 percent to 157.07 yen, down from a peak near 164 yen reached in late July. However, it subsequently rose to 157.70 yen after the Ministry of Finance’s confirmation of the intervention.
Japan has been grappling with the persistent depreciation of its currency, which has contributed to rising import costs and inflating prices, negatively impacting households and the approval ratings of Prime Minister Sanae Takaichi.
In its announcement, the Finance Ministry stated that Friday’s intervention aimed to “counter excessive volatility and disorderly movements in the Japanese yen in recent months.” The ministry emphasized its ongoing dialogue with U.S. Treasury officials and reaffirmed its willingness to engage in further joint interventions if required.
This marks the first coordinated action since 2011, when the two nations worked together to weaken the yen following a devastating earthquake in eastern Japan.
Bank of Japan data suggested that Japan may have sold up to $58.97 billion to buy yen during the intervention in New York markets on Thursday, leading up to Friday’s confirmed action alongside Washington.
U.S. Treasury Secretary Scott Bessent also acknowledged the joint effort, stating that Washington “will not hesitate to participate in further joint intervention.” He expressed strong support for Japan’s market and monetary measures aimed at addressing the yen’s significant undervaluation and continued to call for additional interest rate increases from the Bank of Japan.
In alignment with Bessent’s comments, the Bank of Japan provided a clear indication of a potential early rate hike, despite maintaining its current monetary policy.
Meanwhile, South Korea also intervened in foreign exchange markets on Thursday to purchase its own currency, a move reflecting broader regional policy coordination.
Japan previously intervened in April and May by purchasing yen, but those measures yielded only temporary relief. The Bank of Japan’s recent rate increase to a 31-year high of 1 percent in June also failed to provide sustained support for the currency.
