US Pumps Brakes on Slumping Yen with Surprise Intervention

The Japanese yen has been struggling in recent years, plummeting to a four-decade low against the US dollar. To combat this, Tokyo intervened in global foreign exchange markets and received additional help from the United States.

A Reuters photographer captured an image of Treasury Secretary Scott Bessent's 'To-Do List' during President Donald Trump's cabinet meeting at Camp David, which included buying $5-10 billion worth of Japanese yen. This was followed by a coordinated effort between Washington and Tokyo to lift the yen.

The Japanese finance ministry conducted a yen-buying operation with the US on July 31, spending approximately $60 billion to address the 'excessive volatility and disorderly movements' of its currency. The Federal Reserve Bank of New York sold around $10 billion in euros for yen on behalf of the Treasury Department.

Treasury Secretary Bessent stated that his department would not hesitate to participate in further joint intervention, citing a close relationship with their Japanese counterparts.