The total value of Japan-US coordinated intervention and the outlook for further intervention have been reported, with views emerging that such measures have had little effect in supporting the yen. The analysis also identifies fiscal policy adjustment as the central priority.
According to an announcement by the Ministry of Finance, the total value of yen-buying intervention from 30 April 2026 to 6 May 2026 was ¥11.7349 trillion, and intervention may also have taken place in July-August of the same year. The Japan-US coordinated intervention would be the first since March 2011, while in terms of the number of yen-buying interventions, it is expected to be the first in 28 years.
However, the effect of foreign-exchange intervention is currently considered limited. The Japanese and US authorities are focusing more on containing government bond yields than on pushing down the dollar-yen exchange rate, and calls for Japan to support the government bond market are growing. As a result, views have emerged that intervention alone may not reverse the trend even if the yen continues to weaken.
The effectiveness of rate hikes has also been questioned, with population trends and supply shortages cited as factors behind rising prices. Accordingly, some argue that rate hikes alone will make it difficult to contain long-term government bond yields, and that reducing the fiscal deficit is the central priority for stopping the yen's decline.