US and Japan jointly intervene to prop up the yen for the first time since 1998, and crypto markets are paying attention

Washington and Tokyo just tag-teamed the currency markets in a way they haven’t done in nearly three decades. US and Japanese authorities executed a coordinated yen-buying intervention on July 31 to August 1, marking the first joint operation of its kind since 1998. The yen had been trading near a 40-year low of approximately 164 against the dollar. After the intervention, it rallied to the 156-157 range. What happened and why it matters US Treasury Secretary Scott Bessent confirmed the action was taken to counter what officials described as “disorderly” yen movements. He also noted that further joint interventions remain on the table if conditions warrant them. President Donald Trump framed the move more diplomatically, calling it a sign of friendship with Japan and support for global economic stability. Japan sits as the largest foreign holder of US Treasuries, with a position valued at over $1.1 trillion. Japanese Finance Minister Satsuki Katayama coordinated the effort from Tokyo’s side. The intervention represents a significant escalation from Japan’s earlier unilateral attempts to defend the yen throughout 2026, which had produced limited and short-lived results. Discussions ...