Forex
US-Japan Yen Intervention Fades Amid Ongoing Market Volatility
The joint US-Japan intervention on July 31, 2026, to support the yen has lost its impact. The Japanese currency initially rose but is now back near 160 per dollar.
This ongoing instability highlights the risks of the yen carry trade, which can trigger global market volatility when traders scramble to cover their positions.
The coordinated intervention by the United States and Japan on July 31, 2026, was the first joint action of its kind since 1998. US Treasury Secretary Scott Bessent deployed euro holdings to buy yen in an unconventional tactic.