Story perspectives

Japan Buys Yen, Triggers Biggest Weekly Gain Since February

7/31/2026

Summary

Story summary

Japan intervened in the foreign-exchange market on July 31 2026, buying yen and selling dollars in New York.
Treasury Secretary Scott Bessent said the yen seemed undervalued and that excess volatility was unhealthy.
The yen rose to 159.09 per dollar on Friday, its biggest weekly gain since February.
U.S. Treasury officials warned banks they may intervene and coordinated rate-check requests with Japan, while South Korean authorities also sold dollars in a coordinated intervention.

History

Historical Context

After the 1985 Plaza Accord—signed by the United States, Japan, West Germany, France and the United Kingdom—forced the dollar to drop roughly 5 % against the yen (¥240->¥227), the 1987 Louvre Accord sought to halt the dollar’s decline. Japan’s July 2026 yen-buying program, announced by Treasury Secretary Scott Bessent and joined by South Korean banks, revives that multilateral approach to curb currency volatility.

1 of 2

Story summary

Japan intervened in the foreign-exchange market on July 31 2026, buying yen and selling dollars in New York.
Treasury Secretary Scott Bessent said the yen seemed undervalued and that excess volatility was unhealthy.
The yen rose to 159.09 per dollar on Friday, its biggest weekly gain since February.
U.S. Treasury officials warned banks they may intervene and coordinated rate-check requests with Japan, while South Korean authorities also sold dollars in a coordinated intervention.

1 / 2