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Yen Surrenders Half Its Gains After US-Japan Intervention

Politics9 sourcesAug 7, 2026
FlatRigor 509 sources

The Story

The yen has relinquished nearly half of the gains it made following coordinated intervention by the U.S. and Japan. Officials from both nations have stated their determination to continue defending the yen if necessary. The intervention, which involved the U.S. selling euros for yen, initially strengthened the yen to 155 against the dollar, a rise from its previous level just above 163. This action by the Treasury and the Bank of Japan occurred before the European Central Bank was informed, according to reports. In April, Japan's authorities conducted a single-day foreign exchange intervention, spending a record 6.28 trillion yen, approximately $40 billion, to buy yen and sell dollars. This intervention has also influenced expectations for future monetary policy in Japan, with some analysts now anticipating a potential interest rate increase in September, a shift from earlier predictions of a December move. BlackRock has suggested that the U.S. selling euros to support the yen could introduce geopolitical risks.

The Spread

What they agree on

  • Japan spent a record 6.2 trillion yen on a single-day foreign exchange intervention in April.
  • The U.S. and Japan engaged in coordinated intervention to support the yen.
  • The intervention initially strengthened the yen against the dollar.
  • Officials from the U.S. and Japan have indicated a willingness to intervene further if needed.

Where they split

  • Some sources emphasize the record amount spent by Japan in April, citing 6.2 trillion yen (NHK World-Japan, The Mainichi).
  • Other sources provide a more precise figure for Japan's April intervention, stating 6.28 trillion yen ($40 billion) (Kyodo News, The Japan Times).
  • Coverage varies in its focus on the geopolitical risks associated with the intervention, with BlackRock's statement highlighted in some reports (Bloomberg).
  • The timing of the U.S. intervention relative to the European Central Bank's awareness is a point of emphasis in certain articles (Financial Times).