Story perspectives

Treasury urges Fed to expand repo, supports yen

8/5/2026

Summary

Bessent Urges Fed

Treasury Secretary Scott Bessent urged Federal Reserve (Fed) to expand the FIMA repo facility to aid the yen.
The July 31 2026 U.S.–Japan intervention, the first since 1998, lifted the yen to 157 per dollar.
Finance Minister Satsuki Katayama said Japan drew $60-$80 billion from facility, record drawdown.
The September Federal Open Market Committee (FOMC) meeting will vote on expansion, which analysts say could curb yield volatility and give Japan a yen-support tool.

Summary

Treasury Buys Yen

After the July 31 action, the yen rose to about ¥160.2 from near ¥164 while the won strengthened to 1,424 per dollar from 1,549.4.
Dollar-yen trading volume jumped to roughly $27 billion in early Asian hours, versus a $1.9 billion norm.
Analysts said the intervention’s announcement effect curbed short-yen bets despite unchanged fundamentals.
The Treasury bought yen with euros through Goldman Sachs and Morgan Stanley in a swap meant to shield the dollar.

1 of 2

Bessent Urges Fed

Treasury Secretary Scott Bessent urged Federal Reserve (Fed) to expand the FIMA repo facility to aid the yen.
The July 31 2026 U.S.–Japan intervention, the first since 1998, lifted the yen to 157 per dollar.
Finance Minister Satsuki Katayama said Japan drew $60-$80 billion from facility, record drawdown.
The September Federal Open Market Committee (FOMC) meeting will vote on expansion, which analysts say could curb yield volatility and give Japan a yen-support tool.

1 / 2