Even after coordinated US-Japan intervention at the end of July 2026, the yen’s appreciation was limited, and the dollar-yen exchange rate turned lower for the yen again. Rising long-term interest rates and concerns over fiscal discipline have been cited as contributing factors, while cumulative intervention has reached approximately ¥27 trillion.
The US dollar-yen exchange rate temporarily rose to the ¥155 range following coordinated US-Japan intervention at the end of July 2026, but subsequently rebounded in the direction of yen depreciation. The effect of this intervention in strengthening the yen was limited compared with the standalone interventions in 2022 and 2024.
The recent rise in the US dollar against the yen has shown a strong correlation with rising long-term interest rates in Japan, and the 10-year Japanese government bond yield has at times exceeded 3%. Concerns over fiscal discipline have led to bond selling and yen selling amid expectations of aggressive fiscal policy and the removal of fiscal constraints.
Some observers believe that stronger pressure on Japan and the accumulation of large-scale intervention could become factors supporting yen appreciation. Checks by US Treasury officials and closer US-Japan policy coordination could affect the direction of the yen. Cumulative intervention in 2026 reached approximately ¥27 trillion, and some have pointed to the approximately ¥35 trillion of intervention in 2003–04 as a turning point.