Updated 1w+ ago · Business

US Uses Euros to Prop Up Yen in Intervention Effort

Japan's Finance Ministry and US Treasury Secretary Scott Bessent both confirmed Friday's coordinated yen-buying operation, the first joint intervention by the two countries since 2011.

$58.97 billion: the amount Japan may have sold Thursday alone, before Friday's joint action.
163.73 yen per dollar — a 40-year low — was hit last Thursday before the operation.
0.6% drop in the dollar against the yen followed Monday's confirmation.
1%: the Bank of Japan's current benchmark rate, a 31-year high set in June.

Why it matters: A falling yen raises import costs, drives inflation, and pressures household budgets in Japan. It also adds upward pressure on US Treasury yields, broadening the economic stakes.

Yen weakness is structurally rooted in the large gap between Japanese and US interest rates.
South Korea separately bought its own currency on Thursday, signaling wider regional currency stress.

How 38 sources split on this story

Source landscape

Factuality

High

Mixed

Low

Strong LeftLeftLean LeftCenterLean RightRightStrong Right

Political Bias

Coverage by lean% of 38 sources

38 sources · 85 articles · 53% Center coverage

Where they split: Whether the intervention can hold: analysts note the structural factors driving yen weakness — rate differentials, energy import costs — remain unchanged.

Center coverage, 20 sources: The center focuses on the mechanics and precedent of the joint action, the policy tools available, and the open question of whether structural yen weakness can be addressed by intervention alone.

BBC News1w+US and Japan jointly intervene to prop up yen in rare move CNBC1w+Why the U.S. stepped in after decades to prop up Japan's yen — and what's at stake Reuters1w+Making sense of the Trump Treasury’s odd FX intervention Bloomberg1w+Dollar Drops Further as Yen Rebound Extends Fed-Driven Slide Fortune1w+The U.S. is using euros, not dollars, to prop up the yen, and it may backfire: ‘This kind of twist…undercuts the efficacy of U.S. participation’ | Fortune Yahoo News1w+The US-Japan yen intervention has traders glued to one trade Associated Press1w+El dólar de EEUU se debilita bruscamente ante el yen japonés tras intervención oficial en mercados Japan Times1w+Japan confirms joint yen intervention with U.S., signaling readiness for more action Axios1w+The message beneath the yen intervention CTV News1w+U.S. buys Japanese yen as it drops to a 40-year low Financial Times1w+Japan confirms joint intervention with US to counter yen’s ‘excessive volatility’France 241w+Trump says US backed Japanese Yen in rare currency intervention Jerusalem Post1w+Japan, US confirm joint yen-buying intervention, signal more action to prevent selloff MarketWatch1w+Joint U.S.-Japanese intervention boosts the yen — but will it be enough?Newsweek1w+Why the US helped Japan's Yen—and why it may not be enough NPR1w+U.S. dollar weakens sharply against the Japanese yen after market interventions RealClearWorld1w+Japan, Bretton Woods 2.0, and the End of the Carry Era Semafor1w+US, Japan coordinate yen purchases The Hill1w+Dollar sinks against yen after Trump administration intervention The Week1w+Donald Trump’s multibillion-dollar yen play

Left coverage, 7 sources: The left frames the intervention as a response to genuine economic pain for ordinary Japanese households and a measure of geopolitical alliance, while noting analyst skepticism that it changes underlying dynamics.

Al Jazeera1w+Japan and US confirm rare joint intervention to prop up yen Political Wire1w+The Worries That Drove Uncle Sam to Buy Yen The Guardian1w+Yen hits three-month high after Trump helps prop up currency The New York Times1w+Here’s Why the US Is Helping Prop Up the Japanese Yen CNN1w+US buys Japanese yen as it drops to a 40-year low The Independent1w+US dollar weakens sharply against the Japanese yen after market interventions Time1w+Why the U.S. Stepped In to Prop Up Japan’s Yen Currency

Right coverage, 11 sources: The right emphasizes the strength of the US-Japan alliance and frames the intervention as a demonstration of coordinated diplomatic and financial resolve.

NTD1w+Japan Confirms Joint Yen Intervention With US, Signals Readiness for More Action ZeroHedge1w+The Yen Just Became Everyone's Problem The Epoch Times1w+US Intervenes to Support Japanese Yen: Here’s What to Know Citizen Free Press1w+U.S. Treasuries at risk, leading to bailout for Japan.Breitbart News1w+Trump Cites 'Signal of Friendship' as U.S. Joins Japan to Boost Yen Just the News1w+U.S. and Japan conduct coordinated yen-buying intervention to ease volatility of Japan's currency Newsmax1w+US Dollar Weakens Sharply vs. Yen After Intervention RedState1w+Trump Has the Perfect Response to a Question About the Japanese Yen The American Conservative1w+U.S. and Japan Intervene to Prop Up Yen The Washington Times1w+U.S. dollar weakens sharply against the Japanese yen after market interventions Wall Street Journal1w+The Worries That Drove Uncle Sam to Buy Yen

What’s next: The Bank of Japan signaled a potential rate hike at its September meeting.

Bessent said the US may expand the Federal Reserve's FIMA repo facility in coming months.
Japan's Finance Ministry said it will not hesitate to conduct further joint intervention.
Can coordinated intervention hold without a significant narrowing of US-Japan interest rate differentials?
Will the Bank of Japan raise rates in September, and how much would that move the yen?
How much capacity does Japan have for further dollar-selling intervention without straining its reserves?