Yen surges after Japan and US launch rare joint intervention

3rd Aug 2026 08:17

(Sharecast News) - Japan and the United States confirmed a rare coordinated intervention to support the yen after the currency hit 40‑year lows, with Tokyo signalling it was prepared to act again if needed.

Japan's Ministry of Finance said Friday's joint move with the US Treasury was aimed at countering "excessive volatility" in recent months, following a statement from Donald Trump that Washington was helping to prop up the yen "as a sign of friendship and to support the global economy".

The yen surged on the announcement, jumping as much as 1.4% to 155.20 per dollar - the currency's highest level in almost three months. However, Japanese equities fell sharply in response, with the Nikkei reversing from a one‑week high as the stronger currency weighed on exporters.

Tokyo has been battling a prolonged slide in the yen that has pushed up import costs and fuelled inflation, adding pressure on household budgets and on prime minister Sanae Takaichi's approval ratings. The latest intervention marks the first coordinated yen‑buying effort since 2011.

US Treasury Secretary Scott Bessent backed Japan's move, saying Washington "will not hesitate to participate in further joint intervention" and again urged the Bank of Japan to raise interest rates.

Reporting by Iain Gilbert at Sharecast.com