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Japan spent a record ¥15.4 trillion to prop up the yen

Tokyo, JapanPublished 1 Sep 2026

The Bank of Japan head office in Tokyo, which buys yen on Finance Ministry instruction.
The Bank of Japan head office in Tokyo, which buys yen on Finance Ministry instruction.

Wiiii / Wikimedia Commons, CC BY-SA 3.0 · source

Tokyo presents the July–August buy as market-stabilizing, including a rare joint U.S. operation; critics tie the slide to Takaichi’s unfunded spending and ask whether Washington acted to protect U.S. borrowing costs and a trade deal.

Japan’s Finance Ministry said authorities spent a record 15.4 trillion yen buying yen between July 30 and Aug. 26 after the currency hit a four-decade low near 164 per dollar. The campaign included a rare joint U.S. operation on July 31. Combined with April–May buying, 2026 intervention has exceeded 27 trillion yen. The yen later traded around 159–160.

Shared facts

The yen had fallen to a roughly 40-year low near 164 per dollar.

The yen hit 163.99 per dollar, its weakest since 1986.

Japanese authorities bought yen on July 30 and July 31.

The United States joined a yen-buying operation on July 31.

It was the first joint U.S.–Japan yen-buying intervention in about 28 years, since 1998.

Tokyo and Washington confirmed the joint operation on Aug. 3.

South Korea timed its own won-buying with Japan's operation.

Japan spent a record about 15.4 trillion yen ($96–99 billion) intervening from July 30 to Aug. 26.

The figure was the largest monthly yen-buying intervention on record.

The previous monthly record was 11.73 trillion yen in April and May.

Japan's 2026 intervention total has exceeded about 27 trillion yen, or around $170 billion.

Bank of Japan data suggest the July 30 intervention may have reached 9.6 trillion yen.

The confirmed single-day record was 6.3 trillion yen on April 30.

The ministry total did not specify amounts spent on individual days.

A daily breakdown is expected with quarterly figures, probably in early November.

The yen strengthened to as much as about 155.20 per dollar by Aug. 3.

By late August the yen was trading around 159 to 160 per dollar.

The yen had been stuck around 159.50 since Aug. 10.

Washington said Japan could use a COVID-era Federal Reserve backstop for major central banks.

That facility lets Japan raise dollar liquidity without selling U.S. Treasuries outright.

Scott Bessent said Washington will do "whatever it takes" to support Japan's effort to stabilize the yen.

Bessent said yen undervaluation could trigger other economic problems or competitive devaluations.

Japan imports almost all its energy, with 95% coming from the Middle East.

That leaves Japan exposed to energy-supply disruption from the Iran war.

Slow Bank of Japan tightening versus U.S. rates has kept the yen cheap for global carry trades.

The Bank of Japan held rates at its July meeting.

BOJ policymakers signalled a willingness to tighten faster.

Markets put about 65% odds on a rate hike at the September meeting.

Markets cited caution over Prime Minister Sanae Takaichi's expansionary spending plans.

The size of U.S. intervention operations has not been disclosed.

Yen weakness has pushed up Japan's import costs, particularly for energy, and threatened exporter profits.

Reuters

Japan spent record $96.5 billion to support yen over past month, ministry data shows

Kevin Buckland

Published 28 Aug 2026 accessed 31 Aug 2026

Facts

No unique facts.

Opinion

The size of the intervention shows Tokyo's resolve to pull the yen from four-decade lows.

The Japan News

Japan Spends Record ¥15.3 Trillion in July-Aug. Forex Interventions

Jiji Press

Published 29 Aug 2026 accessed 31 Aug 2026

Facts

The government and Bank of Japan conducted the interventions to curb the yen's historic weakening.

It was the first yen-buying series in about three months, after Golden Week operations in late April and early May.

That surpassed the previous annual record of about ¥15 trillion set in 2024.

On the night of July 30 the dollar plunged about ¥5 to below ¥158 after Japanese intervention.

The dollar rose above ¥160 the next day but later fell below ¥158 again.

Katayama and Bessent said Japanese and US authorities will not hesitate to coordinate further interventions.

On Aug. 3 the dollar also dived against the yen.

Katayama said a September 2025 Japan-US finance ministers' statement supporting intervention is "very strong."

Many in the market believe interventions alone cannot reverse the weak-yen trend.

Opinion

No opinion marked.

Khaleej Times

Japan spent record $96 billion in yen interventions

AFP

Published 29 Aug 2026 accessed 31 Aug 2026

Facts

The Bank of Japan intervenes under ministry instruction to ease damage from sharp exchange-rate swings.

High oil prices have also been weakening the yen.

Trump confirmed the concerted action aboard Air Force One, calling it a "signal of friendship" and "good for the world economy".

On July 31 the yen soared to 157.40, the strongest since early May.

Experts say the Trump administration also acted to reduce the US trade deficit.

Experts say Washington also acted to help Japan invest $550 billion in the US under a 2025 trade deal.

In 2011 the United States, Japan and other G7 members sold yen after a huge earthquake.

A weak yen helps Japanese exporters.

A weak yen inflates import costs, especially oil as the Middle East war strangles Gulf supplies.

Katayama had said Japan was ready to act, remarks aimed at deterring bets on a further yen slide.

Opinion

No opinion marked.

The National

Japan spends record 15.4tn yen on FX intervention amid US warning

The Nation Editorial Team

Published 30 Aug 2026 accessed 31 Aug 2026

Facts

Bessent warned disorderly currency moves could force position unwinds and raise US borrowing costs.

The yen later slipped below 160 per dollar after comments by Fed chair Kevin Warsh.

Bessent said Treasury exchanged ESF foreign-currency assets for yen.

The 160 level is widely viewed as raising the chance of further intervention.

Bessent made the comments in an August 27 letter posted on X the next day.

The renewed decline came despite expectations the BOJ could raise rates soon.

Bessent said "The best-managed crisis is the one that never happens."

The ESF is a Treasury emergency reserve used to stabilize FX and domestic markets.

Treasury used the ESF last year for Argentina's peso and a $20 billion swap line.

Opinion

The move signalled determination to stop a yen and JGB sell-off from spreading through global markets.

The Wall Street Journal

Japan Spent Record $98.7 Billion to Prop Up Yen in Joint Move With U.S.

Megumi Fujikawa

Published 28 Aug 2026 accessed 31 Aug 2026

Facts

The yen has given up many of its initial gains.

Friday's data confirmed the historic scale of the late-July operation backed by Scott Bessent.

A notepad in front of Bessent on July 31 listed buying $5 billion to $10 billion of yen.

The US has also tried to stem a rise in bond yields, with limited success.

Citi said a major driver of yen weakness is foreign investors selling yen to hedge Japan stock investments.

Maurice Obstfeld said the joint US intervention is at best a short-term corrective.

The yen is down around 8% against the dollar over the past year.

Obstfeld said exchange-rate trends depend primarily on monetary and fiscal policies.

Most market watchers expect a BOJ hike at the Sept. 17-18 meeting.

BOJ deputy governor Ryozo Himino cited the risk of falling behind the curve if the bank fails to act in time.

Bessent then took unusual actions in the US bond market to tamp down long-term Treasury yields.

Katayama said the government would enhance the yen's credibility by boosting long-term competitiveness and potential growth.

Katayama called the allies' coordination "extremely strong."

Opinion

That highlights the limitations of government efforts to move prices in financial markets.

The latest intervention succeeded in strengthening the yen somewhat.

The record intervention has had a modest impact so far.

Xinhua

Japan spends record 15.4 trln yen in July-Aug. to support currency

Xinhua

Published 28 Aug 2026 accessed 31 Aug 2026

Facts

The yen hit 163.99 per dollar, its weakest in around 40 years, on July 23.

The joint operation was during New York trading hours on July 31.

Opinion

No opinion marked.