Overview

U.S. Treasury Secretary Scott Bessent posted on X on 3 August 2026 that Washington will not hesitate to participate in any further coordinated foreign‑exchange intervention with Japan if the yen continues to move disorderly. He noted that the Treasury remains in close contact with Japan’s Ministry of Finance and the Bank of Japan (BOJ).

Joint Intervention Details

Japan confirmed that on Friday, 2 August 2026, it carried out its first coordinated yen‑buying intervention with the United States since 2011, following a sharp slide that pushed the yen to a 40‑year low against the dollar. The joint action helped the yen rebound sharply, strengthening by more than 2 % on Thursday and extending gains on Friday, bringing the USD/JPY rate below the ¥158 per dollar threshold ahead of the BOJ’s policy decision.

Market Reaction

By 00:04 GMT on Monday, 3 August 2026, the yen was trading 0.1 % higher at 157.71 per dollar, after having slid nearly 4 % over the previous week. The intervention’s impact was reflected in the rapid appreciation of the currency.

Policy Context

The BOJ kept its short‑term policy rate unchanged at 1 % on Friday but signaled it remains prepared to raise rates further if underlying inflation continues to strengthen. Bessent added that the Treasury also supports expanding the Federal Reserve’s Foreign and International Monetary Authorities (FIMA) Repo Facility, describing it as an important liquidity backstop.

Political Endorsements

Former President Donald Trump endorsed the coordinated move, calling it an act of friendship and economic cooperation between the two allies, stating, “They wanted a little bit of help, and we’re always there for Japan.”

Japanese Government Stance

Bessent said the United States strongly supports Japan’s recent market and monetary‑policy steps to address what he described as the yen’s substantial undervaluation. He referenced Prime Minister Sanae Takaichi’s government as entering “an exciting new phase of Abenomics.”

Source Information

The article, authored by Ayushman Ojha, was published by Reuters on 03‑08‑2026 at 05:42 am under the Forex category.