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[BUSINESS] · Japan, United States, South Korea · 23 sources

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Japan spends record 15.4 trillion yen to support yen

Japan's Ministry of Finance announced that the government spent a record 15.4 trillion yen (approximately $96.5 billion) on foreign exchange interventions between July 30 and August 26, 2026. This represents the largest monthly volume of yen-buying and dollar-selling in the country's history.

The interventions aimed to curb the historic weakening of the yen, which had approached 164 per US dollar, its lowest level since 1986. On July 31, Japan and the United States conducted a rare coordinated intervention, marking the first joint action of its kind in approximately 28 years. The Bank of Korea also synchronized its won-buying operations with Japan's actions to increase market effectiveness.

US Treasury Secretary Scott Bessent defended the support for the yen, noting that extreme volatility could destabilize global markets and potentially lead to higher interest rates in the United States. Meanwhile, markets are currently pricing in a 65 percent probability of a Bank of Japan interest rate hike in September as policymakers signal a potential acceleration in monetary tightening.

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Bank of Japan · Bank of Korea · Donald Trump · Japan · Ministry of Finance · Ministry of Finance of Japan · Scott Bessent · United States · United States government

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