US and Japan Collaborate on Yen Support Amid Dollar Decline

WHO:

ABC News - U.S. President Trump and Japan's finance minister Satsuki Katayama confirmed the intervention.

CNBC - U.S. Treasury Secretary Scott Bessent confirmed the coordinated action.

WHAT:

ABC News - The U.S. dollar was trading at 156.34 yen after the official announcement of the intervention, marking a drop of about 1%.

CNBC - The Japanese yen was trading at 157.70 per dollar on a Tuesday following the intervention.

Bloomberg Markets - The Japanese government reportedly sold as much as $58.97 billion to support the yen during the intervention.

CNBC - The Japanese yen was trading at 157.70 per dollar on Monday following the intervention.

CNBC - The yen's weakness has become an increasing concern for Tokyo, with the currency recently falling to its weakest level in roughly four decades against the dollar.

CNBC - The intervention was carried out "in accordance with the 'Joint Statement of the Japanese and U.S. Finance Ministers'" issued in September 2025.

Bloomberg Markets - Treasury Secretary Scott Bessent stated, "Treasury remains attentive and in close communication with our counterparts at MOF and BOJ."

Bloomberg Markets - Bessent also endorsed Tokyo's broader policy direction, saying the U.S. "strongly support[s] Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen."

CNBC - The Japanese yen had hit 163.73 against the dollar on a Thursday last week, and strengthened to 157.70 per dollar on the following Monday.

Bloomberg Markets - Treasury Secretary Scott Bessent stated, "Friday's coordinated foreign exchange actions countered disorderly yen movements."

Bloomberg Markets - Bessent also said, "We will not hesitate to participate in further joint intervention."

Bloomberg Markets - The U.S. Treasury informed banks to "stand ready for future action" regarding the yen market.

CNBC - Japan's finance ministry stated it "will not hesitate to conduct further coordinated interventions in the future."

CNBC - The intervention was carried out "in accordance with the 'Joint Statement of the Japanese and U.S. Finance Ministers'" issued in September 2025.

CNBC - The ministry announced plans to utilize the Federal Reserve's foreign and international monetary authorities repo facility in the future.

Bloomberg Markets - President Trump stated, "It was a signal of friendship," regarding the U.S. intervention to support the yen.

ABC News - The U.S. dollar weakened sharply against the Japanese yen after intervention, dropping from above 163 yen to below 160 yen.

ABC News - The dollar fell about 1% to 156.34 yen following the official announcement of the intervention.

CNBC - The Japanese yen hit 163.73 against the dollar before strengthening to 157.57 on the day of the intervention.

CNBC - The intervention was the first joint action by the U.S. and Japan since 2011, aimed at addressing excessive volatility in the yen.

CNBC - The Japanese government reportedly sold as much as $58.97 billion to support the yen.

WHERE:

ABC News - The intervention took place in Tokyo and New York trading hours.

WHEN:

CNBC - The coordinated yen-buying operation was conducted on a Friday, with the announcement made the following Monday.

CNBC - The last joint intervention before this was in 2011.

WHY:

CNBC - The intervention was aimed at stemming sharp swings in the Japanese currency and addressing concerns over its weakness, which had reached a 40-year low against the dollar.

Bloomberg Markets - Trump stated the intervention was a gesture of support for Japan and in the interest of global economic stability.

HOW:

Bloomberg Markets - The U.S. Treasury may be using euros rather than dollars to fund its yen purchases to avoid weakening its own currency.

Bloomberg Markets - The U.S. Treasury may be using euros rather than dollars to fund its yen purchases to avoid weakening its own currency and casting doubt on its strong greenback policy.

Bloomberg Markets - The U.S. Treasury may be using euros rather than dollars to fund its yen purchases to avoid weakening its own currency.

CNBC - The intervention involved coordinated yen-buying operations by the U.S. Treasury and Japan's finance ministry.

CNBC - The U.S. Treasury informed banks to be ready for future action regarding the yen market.

(UPDATED August 3, 2026 21:59 UTC)

The Japanese government reportedly sold as much as $58.97 billion to support the yen during a recent intervention, which saw the U.S. dollar trading at 156.34 yen, marking a drop of about 1%. Following this, the yen was trading at 157.70 per dollar on a Tuesday. Interestingly, the U.S. Treasury may be using euros instead of dollars to fund its yen purchases to avoid further weakening the dollar.

(UPDATED August 3, 2026 16:20 UTC)

The Japanese yen is currently trading at 157.70 per dollar, marking its weakest level against the dollar in nearly four decades, which has raised concerns for Tokyo. In response, an intervention was conducted in line with the "Joint Statement of the Japanese and U.S. Finance Ministers" from September 2025, with U.S. Treasury Secretary Scott Bessent affirming support for Japan's efforts to address the yen's undervaluation. Interestingly, the U.S. Treasury may be opting to use euros instead of dollars to fund its yen purchases, aiming to protect the strength of the dollar in the process.

(UPDATED August 3, 2026 12:52 UTC)

The Japanese yen recently experienced a significant rebound, strengthening from 163.73 against the dollar to 157.70 within just a few days. Treasury Secretary Scott Bessent emphasized that last week's coordinated foreign exchange actions were aimed at countering disorderly movements in the yen, and he indicated that the U.S. would not hesitate to engage in further joint intervention if necessary. Additionally, the U.S. Treasury has advised banks to be prepared for future actions regarding the yen market, potentially utilizing euros instead of dollars to fund these purchases and avoid weakening the dollar.

(UPDATED August 3, 2026 08:59 UTC)

Japan's finance ministry has announced it will not hesitate to conduct further coordinated interventions in the future, following recent actions taken in accordance with the Joint Statement of the Japanese and U.S. Finance Ministers from September 2025. President Trump commented that the U.S. intervention to support the yen was "a signal of friendship," while the U.S. Treasury is reportedly considering using euros instead of dollars to fund its yen purchases to prevent weakening its own currency. Additionally, the ministry plans to utilize the Federal Reserve's foreign and international monetary authorities repo facility moving forward.

(UPDATED August 3, 2026 05:31 UTC)

President Trump and Japan's finance minister Satsuki Katayama confirmed a significant intervention aimed at stabilizing the Japanese yen, which had recently reached a 40-year low against the U.S. dollar. Following the announcement, the dollar weakened sharply, dropping from above 163 yen to below 160 yen, with the Japanese government reportedly selling as much as $58.97 billion to support its currency. This coordinated action, the first of its kind since 2011, took place during Tokyo and New York trading hours and was described by Trump as a gesture of support for Japan and a move towards global economic stability.