Japan Intervenes with Record $98.7 Billion to Support Yen Amid 40-Year Low

Japan's Ministry of Finance announced a record $98.7 billion (15.3993 trillion yen) intervention in the foreign exchange market between July 30 and August 26, 2026, to prop up the yen. This aggressive action, coordinated with the U.S. Treasury, was taken as the yen weakened to a 40-year low near 164 to the dollar. Despite the intervention, the yen has since recovered only slightly, trading around 159.65 to the dollar, with persistent interest-rate differentials and fiscal policy concerns limiting further gains. Japanese Finance Minister Satsuki Katayama emphasized enhancing the yen's credibility through long-term competitiveness and economic growth, highlighting strong cooperation with the U.S. government.