US and Japan join forces to prop up the yen

In early August 2026, the United States and Japan confirmed a rare joint intervention in currency markets to support the falling yen. The move helped push the yen to around 155 per dollar, but analysts say doubts remain about how long the effect will last.

US Treasury Secretary Bessent and President Trump described the action as a sign of friendship between the two countries. Japan said it stands ready to intervene again if needed. However, the intervention complicates the Bank of Japan's policy decisions, and some traders are now worried about a possible unwinding of bearish bets against the yen.