Dollar Weakens Amid US-Japan Currency Intervention

The US dollar continued its decline on August 3, 2026, influenced by a joint intervention by the US and Japan to support the yen and a recent Federal Reserve meeting that triggered a sell-off of the dollar.

The dollar index fell to a one-month low, dropping 0.5% against G-10 currencies before recovering slightly to a 0.1% decline. Following the intervention, the yen rebounded from a 40-year low, with US Treasury Secretary Scott Basset indicating readiness for further market interventions if necessary.

The dollar fell 0.3% against the yen, and according to GuruFocus' GF Value, the dollar is currently overvalued by 14%, with an intrinsic value of $69.03 compared to its current price of $78.69.