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8h ago

Japan and U.S. Reportedly Joined Forces to Buy Yen as Tokyo Prepares Announcement

Coordinated purchases aim to halt a four-decade yen slide and may squeeze investors who borrowed in yen, forcing asset sales to cover rising costs.

Image
A Japanese yen note is seen in this illustration photo taken June 1, 2017. REUTERS/Thomas White/Illustration/File Photo
U.S. Treasury Secretary Scott Bessent waves to members of the media at the White House in Washington, D.C., U.S., July 30, 2026. REUTERS/Kylie Cooper
A notepad in front of U.S. Secretary of the Treasury Scott Bessent reads "To Do Buy Japanese Yen $5-10 bil" as he participates in a cabinet meeting at Camp David, Maryland, U.S., July 31, 2026. The note, photographed at 11:33 EDT, came after Reuters earlier reported the Treasury had put banks on alert for a possible U.S. intervention in the market for Japan's currency. REUTERS/Daniel Heuer

Overview

  • Multiple outlets reported that Japanese authorities conducted large yen purchases on Friday and that Tokyo will confirm on Monday that it acted with U.S. officials to support the currency.
  • The Financial Times said the New York Fed sold euros to buy yen for the U.S. Treasury and a Reuters photo showed Treasury Secretary Scott Bessent’s notepad noting a $5–10 billion yen purchase range.
  • Central-bank data indicated Japan may have bought about $58.97 billion of yen on July 30, and the yen jumped sharply before retracing as markets digested the reports.
  • The reports briefly roiled markets, sending U.S. equities into an intraday reversal and pushing Bitcoin down roughly 3.5% as traders reduced risk in response to possible forced unwind of yen-funded positions.
  • Officials must still detail amounts and mechanics when Tokyo and Washington speak publicly, and traders will watch for follow-through that could raise Japanese bond yields, lift import costs in Japan, and spill into global asset markets.