Only days before Monday, August 3rd, 2026, the Japanese yen had fallen to a 40-year low, showing no signs of recovery. However, following a rare joint intervention by Tokyo and Washington, the yen surged to as high as 155.23 per US dollar, marking its strongest level since early May, according to Chinese financial data provider Wind.
The intervention gained further attention after a Reuters photograph revealed a “to-do” list from US Treasury Secretary Scott Bessent during a cabinet meeting, indicating consideration of US purchases of between US$5 billion and US$10 billion worth of yen.
US President Donald Trump described the move as “a signal of friendship” during an interview aboard Air Force One on Sunday, emphasizing that the US is “always there for Japan.” Treasury Secretary Bessent also stated on social media that the US “will not hesitate to participate in further joint intervention.”
Qian Wei, chief analyst of overseas economy and major asset classes at China Securities, explained that Japan’s intervention was primarily about seizing a favourable window, while the US involvement could be aimed at helping limit selling pressure on US Treasuries.
This rare joint action, the first yen-buying intervention since 1998, has implications for markets in mainland China and Hong Kong as well.
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