Bessent and the Fed Help Japan Reverse Months of Yen Loss…

The US and Japan have collaborated to reverse a significant decline of the yen, which has caused inflation in Japan and affected global markets. As of August 1, 2026, the yen traded at 157.40 to the dollar, its strongest value since May, following a precarious fall to its weakest since 1986. This intervention comes amid concerns over rising import costs impacting both businesses and consumers in Japan.

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US Secretary of Treasury Scott Bessent during a Cabinet meeting at Camp David in Maryland on July 31.Photographer: Aaron Schwartz/AFP/Getty Images

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By Shintaro Inkyo and Masahiro Hidaka

August 1, 2026 at 2:19 AM EDT

Updated on August 1, 2026 at 6:12 AM EDT

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The US joined Japan in engineering one of the most notable rebounds in the yen since the currency began its years-long slide, a decline that’s stoked inflation in the Asian nation and rippled through global markets.

At the close of New York trading on Friday, the yen was quoted at 157.40 to the dollar, the strongest since early May. Just two days earlier it was flirting around the weakest levels since 1986, sounding alarm bells in Tokyo as rising import costs squeeze businesses and consumers.

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Bessent and the Fed Help Japan Reverse Months of Yen Losses