The United States and Japan just pulled off their first coordinated yen-buying intervention since 1998. The yen briefly strengthened. Then it started sliding again.
On July 30-31, Japan’s Ministry of Finance and the US Treasury stepped in to halt the yen’s freefall after it touched a 40-year low near 164 per dollar. Japan’s share of the operation alone is estimated between $59 billion and $85 billion.
The intervention playbook
Japan bought yen in massive quantities while the US Treasury sold euros to purchase yen. Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent both publicly confirmed the operation, with President Donald Trump also acknowledging US participation.
The yen appreciated to roughly 155 per dollar following the intervention. By mid-August, the yen had drifted back to the 158-160 range.
