The Japanese yen strengthened sharply on Monday as markets assessed the impact of a recent coordinated intervention by Japan and the United States aimed at limiting excessive volatility in the currency.
The Japanese currency also recorded gains against other major currencies, including the euro and British pound, prompting speculation among traders that Japanese authorities could take further action to support the yen.
Japanese Yen to USD
On Monday (3 August 2026), the yen gained as much as 1% during Asian trading hours, reaching 155.20 against the US dollar, its strongest level in around three months, before easing some of the advance. It was last trading about 0.7% higher at 156.46 per dollar.
What’s Japan Finance Minister says
Japan’s Ministry of Finance confirmed that it purchased yen in coordination with the US Department of the Treasury on July 31, following a period of significant weakness in the currency. The move was carried out under the framework of a previous US-Japan finance ministers’ agreement aimed at addressing disorderly market movements.
Japan’s Finance Minister Satsuki Katayama said the intervention was intended to counter excessive volatility and added that authorities would continue monitoring market conditions.
On Friday 31st, July (U.S. Eastern Time), Japan’s Ministry of Finance purchased the Japanese yen in coordination with the U.S. Department of the Treasury.
This joint action was taken pursuant to the U.S.-Japan Finance Ministers’ Joint Statement issued in September 2025 and…
— 財務省 (@MOF_Japan) August 2, 2026
“The Japanese Ministry of Finance remains attentive and in close communication with our counterparts at the U.S. Treasury,” Katayama said. “We will not hesitate to conduct further joint intervention.”
US Treasury Secretary on Yen Buying
US Treasury Secretary Scott Bessent also confirmed Washington’s involvement, saying the coordinated foreign exchange action helped address unstable movements in the yen.
“The Trump Administration delivers for America’s trusted partners. Economic security is national security,” Bessent said in a statement. He added that the Treasury would remain in contact with Japanese officials and would participate in further joint interventions if needed.
The Trump Administration delivers for America’s trusted partners. Economic security is national security. And the U.S.-Japan alliance is built on both.
Friday’s coordinated foreign exchange actions countered disorderly yen movements.
Treasury remains attentive and in close…
— Treasury Secretary Scott Bessent (@SecScottBessent) August 2, 2026
The yen’s recent recovery followed a strong rise over two trading sessions at the end of last week. Data from the Bank of Japan indicated that Tokyo may have spent billions of dollars buying yen during the intervention period.
The currency had faced prolonged pressure due to differences in interest rates between Japan and other major economies. The Bank of Japan’s cautious approach toward tightening monetary policy contributed to wider yield gaps, which weighed on the yen for years.
