US Treasury Sells Euros to Bolster Weak Yen

The US Treasury conducted an unusual foreign exchange intervention by selling euros to buy Japanese yen on August 1, 2026. The joint action with Japan aimed to bolster the weak yen while preventing broad-based U.S. dollar depreciation.

According to central bank operational data, Japan may have allocated as much as $36.58 billion during Friday's joint market action. The yen had previously strengthened nearly 4% last week to around 157 per dollar.

The euro dropped from a high of 187.4 yen on Thursday to temporarily fall below 180 on Monday, marking a shift of more than 4% in the currency cross-rate.