Japan-US Joint Intervention Fails to Stem Yen's Decline
Japan's Ministry of Finance has spent a record ¥15.4tn ($97.4bn) since late July to stabilize the yen, which has been plummeting against the US dollar.
The unprecedented intervention was led by the US Treasury Secretary Scott Bessent and the Federal Reserve Bank of New York, which sold euros to buy yen, injecting an estimated $5-10bn into the operation.
On July 31, the US Treasury Department joined forces with Japan's Ministry of Finance for the first time since 1998, aggressively buying yen to shock the market after it collapsed toward ¥164 against the dollar.
The yen fell to a 40-year historic low against the US dollar in mid-2026, plunging past the ¥162-¥164 range, and then rebounded to around 155 per dollar following the joint intervention.