US and Japan Jointly Intervene to Stabilize Plunging Yen
On August 3, 2026, Japan and the US executed a historic joint market intervention to rescue the plunging yen. The move marked the first coordinated effort by Tokyo and Washington since 2011's Great East Japan Earthquake.
The intervention's impact was immediate, with the dollar dropping from 160.22 yen on Friday evening to 155.20 yen by Monday morning. Finance Minister Satsuki Katayama confirmed the joint action in a statement, noting that Tokyo and Washington had coordinated their efforts to counter excessive speculative volatility.
The move is significant because it marks a departure from the US's traditional stance of favoring a strong dollar to maximize domestic purchasing power and curb inflation. By jointly intervening in the market, Japan and the US are signaling a recognition that extreme currency imbalances threaten broader geopolitical economic stability.