The US Treasury intervened in the foreign exchange market on Friday, August 1st, 2026, to support the Japanese yen through outright purchases, according to the Financial Times. This move came as part of coordinated efforts with Japan to strengthen the yen, which had been trading near its lowest levels in four decades.

The Federal Reserve Bank of New York facilitated the intervention by selling euros to buy yen on behalf of the Treasury, working through major financial institutions Goldman Sachs and Morgan Stanley, the Financial Times reported, citing sources familiar with the matter.

Additionally, Treasury officials informed several banks that they might intervene further in the yen market and advised them to "stand ready for future action," a source familiar with the matter told Reuters.

Japan itself reportedly sold up to $58.97 billion to purchase yen on Thursday, July 31st, 2026, according to central bank data released on Friday, signaling repeated efforts to curb the yen's weakness.

News of the US Treasury's potential intervention helped push the yen higher against the dollar on Friday. Attempts to reach the Treasury, New York Fed, and Morgan Stanley for comment were unsuccessful outside regular business hours.

Sources