The Japanese government bought yen and sold dollars in foreign exchange markets on July 30, pushing the currency to its strongest level since mid-May and triggering speculation of coordinated intervention. The yen had fallen to a four-decade low just the prior week.
The yen climbed roughly 2 percent against the dollar, reaching as high as the late-157 range in New York trading before settling near 160.20. U.S. Treasury Secretary Scott Bessent said the yen appeared significantly undervalued and suggested Japan may have intervened. The Federal Reserve Bank of New York conducted a rate check, widely seen as a precursor to direct action. Japanese finance official Atsushi Mimura said U.S. authorities provided support beyond moral backing.
Finance Minister Satsuki Katayama declined to confirm or deny intervention on July 31. South Korea's currency also surged sharply, fueling speculation of parallel action by Seoul.