US and Japan intervene to support yen for first time since 1998

In early August 2026, the United States and Japan jointly intervened in currency markets to support the yen, the first such action since 1998. The move came after the yen had weakened sharply, and reports suggest Japan may have spent around $32 billion on Friday alone. Following the intervention, the yen strengthened to about 155 per dollar, though traders remain alert for further action.

The joint effort highlights ongoing tensions between Japan's monetary policy and market pressures. Analysts note that the intervention complicates the Bank of Japan's policy choices, as it tries to balance supporting the currency with broader economic goals. The action underscores the challenges Japan faces in stabilizing the yen amid persistent market speculation.