The Japan-U.S. coordinated intervention in 2026 was carried out against a different backdrop from that of 1998. Although the purpose of preventing further yen depreciation was the same, share prices moved in the opposite direction. Rising long-term interest rates and concerns about fiscal discipline were among the factors behind the difference.
A comparison of the Japan-U.S. coordinated intervention conducted in 1998 with the similar intervention carried out in 2026 shows that both shared the aim of curbing yen depreciation. However, the direction of share prices was almost the opposite of that in 1998, with share prices continuing to renew record highs in 2026.
The backdrop in 1998 included concerns about a financial crisis in Japan and signs of capital flight, with share prices and the yen falling at the same time. By contrast, in 2026, rising long-term interest rates contributed to yen depreciation, while concerns about fiscal discipline also had an impact. Differences in the backdrop have changed the implications of the intervention.