US and Japan launch foreign exchange intervention at 40-year low of the yen
The short version
On August 3, 2026, the US and Japan jointly intervened in the foreign exchange market after the yen reached its weakest level against the dollar in around 40 years. The measure is Japan's first USsupport since 2011 and is intended to prevent further devaluation of the yen.
On August 3, 2026, the yen reached its weakest price against the dollar in about four decades.4,3,1 The fall in share prices hit the Japanese middle class in particular.4 The US and Japan decided to intervene in the foreign exchange market together.7,3,2,1
The intervention is the first USaid to Japan since 2011.7,5 The measure is intended to prevent further devaluation of the yen.6,3,1 Central banks from Washington and Tokyo participated in the action.6
The countries sold dollars to buy yen.5 USmotivation is described as a combination of alliance loyalty and self-interest.7 Japan's high public debt has been cited as a drag on the yen.6
The joint intervention was announced by the governments of both countries.3 The aim of the action is to stabilise the yen price and the financial markets.3 The announcement was made in the early hours of August 3.2
The intervention was described as a major measure.7 The implementation took place simultaneously in Tokyo and Washington.1
Why it matters
This account was written from the 7 reports listed below, filed by 3 independent outlets, and checked against them line by line. It is not a copy of any one of them. Spotted an error? Tell us.
Comments
0Comments are screened automatically. Disagreement is welcome; abuse and spam are not.
Loading…
Related
Russia detains Japanese journalist on alleged espionage
The Federal Security Service says the Hokkaido Shimbun reporter was collecting information on Russia’s defence capabilities before being transferred to Moscow.
U.S.: Soldiers Refuse to Serve in the War Against Iran
Several U.S. soldiers are resigning because of the war in Iran, while Ukraine is simultaneously suffering from a shortage of Patriot missiles, which is being exacerbated by the same conflict.
Trump Signs Executive Order Against U.S. Birthright Citizenship
New Decree Aims to Limit the "Place of Birth" Principle and Prevent "Birth Tourism"