US Treasury joins Japan in yen intervention, marking first direct support since 2011

Washington's entry into the foreign exchange battle signals a coordinated push to stabilize the yen, adding fresh volatility to FX markets and complicating the global rate outlook.

By Handelsavisen Newsroom · Automated 2026-08-01 03:34 UTC · 1 min read

The US Treasury Department has intervened in the foreign exchange market to support the Japanese yen, marking the first time Washington has directly stepped in to bolster the currency since 2011.

The move follows recent intervention efforts by Japanese authorities and represents a significant escalation in the coordinated response to yen weakness.

Reports indicate that US Treasury Secretary Scott Bessent directed the purchase of between $5 billion and $10 billion in Japanese yen.

Reports indicate that US Treasury Secretary Scott Bessent directed the purchase of between $5 billion and $10 billion in Japanese yen.

The decision comes after the US Treasury notified major financial institutions earlier in the week that it might intervene as early as Friday.

This action underscores the growing concern among Western policymakers regarding the yen's depreciation and its potential spillover effects on global financial stability.

The intervention follows a period of intense pressure on the yen, which had been trading near multi-year lows against the US dollar.