Japan spent 15.39 trillion yen on currency intervention as US Treasury defends the move
Japan's Ministry of Finance reported spending 15,399.3 billion yen on currency intervention between 30 July and 26 August. US Treasury Secretary Scott Bessent defended the July yen purchases in a letter to Senator Elizabeth Warren, arguing that disorderly yen markets risk raising borrowing costs for American families.
Economics & Markets··Night
Japan details its intervention spending
Japan's Ministry of Finance reported on 28 August that its foreign exchange intervention totalled 15,399.3 billion yen for the period from 30 July to 26 August 2026. The monthly publication serves as the ministry's official account of the operations rather than a market estimate, anchoring the debate over the scale of the yen support. The late-July joint operation marked the first US intervention to buy the yen since 1998, a move that drew attention in Washington.[2], [1]
US Treasury defends the purchases
US Treasury Secretary Scott Bessent defended the July yen purchases in a letter to Senator Elizabeth Warren posted on 29 August. Bessent argued that disorderly yen markets can trigger forced unwinds and ultimately raise borrowing costs for American families and businesses. He noted that existing Exchange Stabilization Fund foreign-currency assets were used and stressed that Japan is the largest foreign holder of US Treasuries, meaning no credit was extended and there is no debt to repay.[1]
Yen falls back below 160
Bessent declined to specify the exact amount of US funds deployed in the joint operation. Following the official confirmation of the intervention total and the Treasury Secretary's defence, the yen fell below 160 per dollar on Friday for the first time since the day of the operation. The depreciation highlights the ongoing pressure on the currency despite the 15.39 trillion yen spent.[1], [2]
