Japan Spent Record $50 Billion in Single Day to Bolster Yen

By Megumi Fujikawa

Japan spent a record $50 billion in one day during July to prop up the yen, underscoring an aggressive intervention campaign that included rare joint action with the U.S.

Ministry of Finance data on Monday showed that Tokyo bought a total of 15.399 trillion yen, equivalent to $97.16 billion, in July and August. It deployed about half of that on July 30 alone, spending 7.976 trillion yen.

The sum exceeded the amount spent in April and May, reflecting officials' growing anxiety after the currency tumbled to a four-decade low near 164 against the dollar earlier this year, and highlighting the difficulty of turning the tide against persistent yen weakness.

Japan's Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent confirmed coordinated intervention to support the yen in late July, the first such operation since 1998.

The unusual move initially boosted the yen, but the currency is still hovering around 158.20 against the dollar as growing expectations of further Federal Reserve rate increases reinforce views that the wide U.S.-Japan interest-rate gap is here to stay.

Bessent was outspoken about the yen's sharp slide during the summer, expressing support for Tokyo's steps to counter the currency's undervaluation and noting its role in driving up domestic inflation.

His remarks fueled speculation about faster monetary tightening by the Bank of Japan, which raised interest rates to 1.25% in September and is expected to act again by year's end.

The central bank has cited the yen's weakness as one of the major factors affecting Japan's economic and inflation outlook.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

November 08, 2026 22:08 ET (03:08 GMT)