US Treasury Signals Possible Further Intervention to Support Yen After Japan’s Market Action

On Thursday, August 1st, 2026, Japan intervened in the foreign exchange markets by buying yen and selling dollars in an effort to support its currency. Following this action, the US Treasury Department has informed currency market participants and banks to prepare for a possible further intervention to stabilize the yen, according to Nikkei Asia.

This development indicates coordinated attention by US and Japanese authorities to address volatility in the yen’s value. Banks have been advised to be ready for operations involving the purchase of Japanese currency if necessary.

Sources

• Nikkei Asia: US Treasury tells banks further yen intervention possible; yen surges

(Photo credit: Akira Kodaka)