Dollar Plunges Against Yen After Joint Market Intervention

The U.S. dollar experienced a significant decline against the Japanese yen after market interventions by both countries were confirmed on August 3, 2026.

The dollar had been trading at above 163 yen, reaching 40-year highs before regulators stepped in, causing it to drop below 160 yen.

U.S. President Donald Trump stated that the intervention was a 'signal of friendship' and provided a 'financial benefit' for the U.S., while Japan's Finance Minister Satsuki Katayama confirmed that the finance ministry had purchased yen in coordination with the U.S. Treasury Department to counter excessive volatility.