Japan's Finance Minister Katayama Satsuki issued a statement on the 3rd saying that Japan and the US have jointly interfered in the foreign exchange market on July 31 EST, and additional intervention measures are not ruled out based on market conditions. The statement said that the joint intervention was based on the Japan-US Treasury Secretary's joint statement issued in September 2025 to deal with recent sharp fluctuations and chaotic trends in the yen exchange rate. Japan will continue to maintain close communication with the US and “will not hesitate to take further coordinated intervention measures” if necessary. Apart from special periods such as financial crises and major disasters, joint intervention in the foreign exchange market by Japan and the US is extremely rare. According to a report by the Japan Broadcasting Association, this is another time in 15 years since the two sides jointly interfered in the foreign exchange market after the 2011 Great East Japan Earthquake. Harumi Mukawa, chief economist at the Mitsubishi UFJ Morgan Stanley Securities Investment Research Department, believes that the recent weakening of the yen mainly reflects market concerns about Japan's fiscal expansion and the Bank of Japan's delayed response to monetary policy. Foreign exchange market intervention is a short-term response. To stabilize the yen trend, it is still necessary to start with fiscal and monetary policy adjustments. The yen exchange rate has continued to weaken since this year. At the end of July, the exchange rate of the yen against the US dollar once approached 1 US dollar to 164 yen.

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