Japan Spends Record $96.5 Billion to Support Yen as Currency Weakness Intensifies
The Finance Ministry announced on Aug 28, 2026, that Japan intervened with ¥15.4T ($96.5B) in FX markets to prop up the yen, a record.
ASIA,ECONOMY
Global N Press
8/29/20261 min read
On August 28, 2026, Japan’s Finance Ministry said the government had spent a record 15.4 trillion yen ($96.5 billion) between July 30 and August 26 to intervene in foreign-exchange markets and support the yen. The currency had fallen to its weakest level in more than four decades, increasing pressure on Tokyo to prevent further depreciation. The Bank of Japan carried out major interventions on July 30 and 31, with some operations reportedly coordinated with the United States and South Korea. A weaker yen raises the cost of imported energy and other goods, potentially adding to inflationary pressure in Japan, while creating mixed effects for exporters whose overseas earnings become more valuable in yen terms.
Japan’s relatively low interest rates have also encouraged investors to use yen-funded trades to purchase overseas assets, meaning sharp movements in the currency can influence international capital flows. U.S. Treasury Secretary Scott Bessent has backed Japan’s efforts to stabilize the yen and warned that a significantly undervalued currency could have broader economic consequences. The record intervention highlights the challenges facing Tokyo as high energy costs, diverging monetary policies and global financial volatility put pressure on the yen. Because Japan is a major global economy, creditor and international investor, sustained changes in its currency policy could affect other Asian currencies, bond markets and cross-border capital allocation.
