U.S. and Japan Launch Joint Yen Intervention Since 2011

The United States and Japan have undertaken a rare coordinated intervention to support the Japanese yen, marking the first such joint action since 2011 and signaling a significant escalation in efforts to arrest the currency's slide to 40-year lows. Japan's Finance Ministry confirmed the operation on Monday, August 3, stating it conducted joint yen-buying with the U.S. Treasury Department on Friday, July 31, to counter what it called excessive volatility and disorderly movements. The move follows the yen's decline to near 164 per dollar in late July, its weakest level since 1986.

The intervention was publicly previewed by U.S. President Donald Trump on Sunday, August 2, who described the action as a sign of friendship and beneficial for the global economy. He stated that Japan had asked for help and that the U.S. was "always there for Japan." U.S. Treasury Secretary Scott Bessent confirmed the effort, saying Washington would not hesitate to participate in further joint action and strongly supporting Japan's steps to correct what he called the substantial undervaluation of the yen.

Market data indicates a series of actions last week. Japan may have sold as much as $8.97 billion...