Japan and the US jointly intervene in the foreign exchange market for the first time in over a decade; the New York Fed conducts selling Euros and buying Yen operations, Bessent's handwritten list revealed

Japan and the US jointly intervene in the foreign exchange market for the first time in over a decade; the New York Fed conducts selling Euros and buying Yen operations, Bessent's handwritten list revealed

智通财经2026/08/01 09:36

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The Financial Times, quoting informed sources, reported that the U.S. Treasury officially entered the market on Friday to buy yen in support of the Japanese currency. The Federal Reserve Bank of New York carried out sell euro and buy yen transactions via Goldman Sachs and Morgan Stanley. This marks the first joint direct intervention by the U.S. and Japan in the foreign exchange market since the G7 coordinated action in 2011.
The to-do list of U.S. Treasury Secretary Bessent clearly included "buy 5 to 10 billion USD in yen," providing direct evidence of the planned nature and scale of the intervention. The U.S. side did not comment on this matter, the New York Fed and Morgan Stanley did not respond outside working hours, and Goldman Sachs declined to comment.
Data released by the Bank of Japan on Friday showed that Japanese authorities possibly sold about 58.97 billion USD to buy yen on Thursday. Nikkei News reported on Saturday that Japan intervened again during the New York session on Friday. While the Japanese Ministry of Finance did not immediately respond, it stated on social media that it was ready to use the Federal Reserve's FIMA standing repo facility and other available tools to support orderly market operations.
After the news was released, the yen rapidly strengthened, with the USD/JPY exchange rate dropping from around 158.9 to about 157.6. In recent weeks, this rate had once approached 164, the highest level since 1986. The FIMA repo mechanism allows Japan to raise dollar liquidity without directly selling U.S. Treasuries, alleviating concerns in the market about Japan's limited intervention capacity.
This coordinated intervention marks a significant shift in the U.S. stance on a strong dollar, putting short sellers under dual pressure from policy and capital. The next focus will be whether the Bank of Japan's September meeting will signal tightening to reinforce the effects of the intervention, and whether the U.S. regards this move as an ongoing policy adjustment rather than a one-off operation.

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