Get you up to speed: Japan and US confirm rare joint intervention to prop up yen
Japan and the United States confirmed a rare joint intervention to buy yen, aimed at halting the Japanese currency’s decline to 40-year lows. The Japanese Ministry of Finance stated that the intervention was intended to counter excessive volatility in the yen’s value, emphasising the willingness to take further action if necessary.
Tokyo’s intervention involved a potential sale of up to $58.97 billion in New York markets prior to the confirmed joint action with Washington. The Japanese Ministry of Finance stated it is maintaining close communication with the U.S. Treasury and is prepared for further interventions if necessary.
The Japanese Ministry of Finance confirmed that the joint yen-buying intervention with the US Treasury was aimed at countering excessive volatility, with a readiness to conduct further interventions if necessary. US Treasury Secretary Scott Bessent stated that Washington “will not hesitate to participate in further joint intervention” and reiterated calls for the Bank of Japan to implement higher interest rates.
What remains unclear — The specific amount Japan may engage in for further joint interventions with the US has not been disclosed.
Japan and US announce joint intervention to support yen amid decline
Economy|Business and EconomyJapan and US confirm rare joint intervention to prop up yen
US President Donald Trump says helping to bolster the Japanese currency is a sign of friendship.
Published On 3 Aug 20263 Aug 2026
Japan and the United States have confirmed a rare, coordinated yen-buying intervention to halt the Japanese currency’s slide to 40-year lows, with Tokyo signalling it is willing to take further action if needed.
The Japanese Ministry of Finance confirmed the joint intervention after a statement by US President Donald Trump on Sunday announced that Washington was helping to prop up the yen as a sign of friendship and to support 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 response to a reporter’s query about why the US is helping to support the currency.
Analysts say the intervention underscores both countries’ resolve to prevent global spillovers from a sell-off in the yen and Japanese government bonds, including by adding pressure on already rising US Treasury yields.
The dollar fell 0.2 percent to 157.07 yen after Trump’s remarks, well off the 40-year high near 164 yen hit late last month, but it rose back to 157.70 yen after the Japanese Finance Ministry’s statement.
Japan has been struggling to curb a relentless drop in its currency that pushes up import prices and stokes broader inflation, hitting household wallets and Prime Minister Sanae Takaichi’s approval ratings.
In its statement, Japan’s Finance Ministry said Friday’s yen-buying intervention with the US Treasury Department “countered excessive volatility and disorderly movements in the Japanese yen in recent months”.
“The Japanese Ministry of Finance remains attentive and in close communication with our counterparts at the U.S. Treasury,” it added. “We will not hesitate to conduct further joint intervention.”
The joint intervention is the first since a 2011 coordinated action to weaken the yen after the devastating earthquake in eastern Japan.
Tokyo may have sold as much as $58.97bn to buy yen when it intervened in New York markets on Thursday, Bank of Japan data indicated, before Friday’s confirmed joint intervention with Washington.
US Treasury Secretary Scott Bessent also confirmed Friday’s effort, noting on Sunday that Washington “will not hesitate to participate in further joint intervention”.
“We strongly support Japan’s decisive market and monetary steps to correct the substantial undervaluation of the yen,” Bessent said in a separate statement on X, repeating his calls for further interest rate hikes by the Bank of Japan.
In line with Bessent’s repeated calls for higher Japanese interest rates, the Bank of Japan on Friday offered its most explicit signal to date of an early rate hike, even as it kept monetary policy steady.
In a sign of broader policy coordination, South Korea also stepped in to buy its won currency on Thursday.
Japan intervened in April and May, buying yen, but the move triggered only a brief rebound. The Bank of Japan’s June rate hike to a 31-year high of 1 percent also gave the struggling currency little lasting boost.