Exclusive-Japan to announce Tokyo, Washington took joint action on yen, sources say

August 2, 2026 - 09:15

TOKYO - Japanese Finance Minister Satsuki Katayama is expected to announce on Monday that Tokyo and Washington carried out coordinated action in the currency market to stop the yen from falling to its weakest levels in four decades, according to two Japanese government officials familiar with the matter.

The officials, who spoke on condition of anonymity because the discussions were private, said Katayama will likely emphasize the two governments' shared resolve to push back against what they view as excessive depreciation of the yen. The move comes after the currency slid past 160 against the dollar, a threshold that has historically triggered concern among policymakers.

The joint effort marks a rare instance of direct cooperation between Japan and the United States in foreign exchange markets. While Washington has often preferred to let markets set currency values, the severity of the yen's decline appears to have shifted that stance. The officials noted that the intervention was designed to curb speculative trading and restore stability, not to target a specific exchange rate level.

Katayama is set to address reporters after a regular cabinet meeting, where she is expected to outline the details of the action and reiterate the government's readiness to act again if needed. Market participants will be watching closely for any signals about future steps, as the yen's trajectory remains a key concern for Japan's economy, which relies heavily on imports for energy and raw materials.