Japan and US Confirm Coordinated Yen-Buying Intervention, Vow Further Action

Japan and the United States have conducted a coordinated yen-buying intervention, Japan's finance ministry confirmed on Monday (August 3, 2026), marking the first joint action since 2011 to support the Japanese currency. The move aims to halt the yen's slide to fresh 40-year lows and prevent a selloff in the yen and Japanese government bonds (JGBs) from causing global spillovers, such as adding upward pressure on already rising US Treasury yields, analysts said.

The joint intervention, carried out on Friday (July 31, 2026) with the US Treasury Department, "countered excessive volatility and disorderly movements in the Japanese yen in recent months," according to a statement from Japan's finance ministry. The ministry added that it remains "attentive and in close communication" with US counterparts and would "not hesitate to conduct further joint intervention."

The intervention is the first of its kind since the 2011 coordinated action to weaken the yen following the devastating earthquake in eastern Japan. This time, however, the move is aimed at strengthening the yen, which had fallen to near 164 per dollar last month—its lowest level in four decades—driven by rising fuel costs and interest rate differentials.

President Donald Trump said on Sunday (August 2, 2026) that the US was helping Japan prop up the yen as a sign of friendship and to support the world economy. "They have a weakening yen, and they wanted a little bit of help. And we're always there for Japan," Mr. Trump said in response to a reporter's query. Analysts note the intervention also helps the US address concerns that the yen's extraordinary weakness offsets the boost from Trump's tariffs.

Japan's top currency diplomat, Atsushi Mimura, called the joint intervention "the culmination of Japan's alliance with the United States," and said currency policy would continue to align with the Bank of Japan's monetary policy. Finance Minister Satsuki Katayama told reporters that the ministry "will not hesitate conducting further coordinated intervention."

The yen surged more than 1% to 155.20 per dollar on Monday after the announcement, its strongest since early May, before the dollar fell 0.6% against the yen to an intraday low of 156.50 in the Asian morning. Traders remained on alert for further intervention. Asked whether authorities stepped in on Monday, Katayama declined to comment.