U.S.-Japan yen intervention confirmed as officials signal readiness for more

The U.S.-Japan yen intervention was formally confirmed after Tokyo said it conducted a coordinated yen-buying operation with the U.S. Treasury on Friday. The dollar had reached 163.73 yen on Thursday before falling to 157.57 on Friday, and traded at 157.70 on Monday, according to CNBC.

Japan’s Finance Ministry said the operation addressed recent excessive volatility and disorderly movements in the currency, under a joint statement issued by the two countries’ finance ministers in September 2025. In this operation, buying yen supported the Japanese currency against the dollar. Officials described the aim as addressing volatility and disorderly movements; the reporting does not disclose a target level.

U.S. Treasury Secretary Scott Bessent separately confirmed the coordinated foreign-exchange action. He said Friday’s moves countered disorderly yen trading and that Treasury remained in close contact with Japan’s Finance Ministry and Bank of Japan.

Will the U.S. and Japan intervene in the yen again?

Both governments indicated that further action remains possible. Japan said it would not hesitate to carry out additional coordinated interventions, while Bessent said the Treasury would not hesitate to take part in further joint action. Neither side disclosed the size of Friday’s operation.

The confirmation followed indications of possible action late last week. Reuters reported on July 31, citing a person familiar with the matter, that the Treasury had told several banks to be prepared for potential yen-market intervention through the Federal Reserve Bank of New York. A Reuters photograph from a cabinet meeting also showed a note in front of Bessent referring to buying $5 billion to $10 billion of yen. That note indicated intended action, rather than confirming an amount executed.

Estimates cited in earlier reporting concerned Japan’s own activity, not a confirmed total for the bilateral operation. Reuters said Bank of Japan data indicated Japan may have sold as much as $58.97 billion to purchase yen on Thursday. The amount was an indication derived from central-bank data, not a final confirmed transaction figure.

How could Japan obtain dollars without selling Treasuries?

Japan said it intends to use the Federal Reserve’s Foreign and International Monetary Authorities, or FIMA, repo facility in future. The facility permits approved foreign central banks and monetary authorities to obtain short-term dollars by temporarily exchanging U.S. Treasury securities. CNBC reported that the arrangement could provide dollar liquidity without an outright sale of Treasuries.

The episode is unusual in recent currency-market history. Reuters said the last direct U.S. support for the yen came in 2011, when the Group of Seven coordinated action after Japan’s earthquake and tsunami. Reuters described the latest move as the first joint U.S.-Japan yen intervention in 15 years.

President Donald Trump said on Sunday that U.S. participation was intended as support for Japan and was in the interest of global economic stability, according to CNBC.

This story draws on original reporting from CNBC.