{
  "id": 690671,
  "title": "Japan and the U.S. just spent billions to try to save the yen. Why is it already losing ground?",
  "url": "https://urgent.news/2026/08/12/japan-and-the-u-s-just-spent-billions-to-try-to-save-the-yen-why-is",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-12T17:13:48.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/08/12/us-japan-yen-intervention-unraveling-weak-yen-causes/"
  },
  "original_language": "en",
  "account": "On July 30, Japan and the United States jointly intervened to support the weakening yen, a move reported to cost Japan around $59 billion. This was the first such joint intervention since 1998. Both U.S. Treasury Secretary Scott Bessent and Japan's Finance Minister Satsuki Katayama pledged to continue the intervention if necessary. Initially, the yen strengthened slightly after the intervention, but it soon lost half of its gains, trading at 159 to the dollar by August 11. Economists argue that the intervention doesn't address the main reasons behind the yen's weakness, such as the significant gap in interest rates between the U.S. and Japan, concerns about Japan's fiscal policy, and the fact that investors can obtain better yields elsewhere. The yen has been declining since 2012, when it was around 78 to the dollar. Corporate Japan has typically favored a weaker currency for its exports, but this sentiment has shifted due to rising import costs impacting profits and consumer cost-of-living concerns. The Japanese government is believed to have sold up to $58.97 billion in yen, with unknown details of the U.S. intervention, though it is estimated to be between $5 and $10 billion. The joint intervention likely aimed to maintain stable U.S. Treasury yields and limit pressure on the market following Federal Reserve Chair Kevin Warsh's recent performance. The intervention might be effective in the short term but is unlikely to bring lasting change unless there is a significant alteration in Japanese policy or a substantial worsening in the global growth outlook.",
  "summary": "Economists point out that the U.S.-Japan intervention—as significant as it may be—doesn’t tackle the underlying reasons behind the yen’s weakness.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}