Archive · 3 Aug 2026
US-Japan Intervention Strengthens Yen, Impacts Indian Markets in 2026
The US and Japan worked together to help the Japanese yen, a currency that was falling a lot.
They bought yen to make it stronger against the US dollar.
This move could make Indian investors who use yen to buy Indian stocks feel less safe, so they might sell some of their investments.
The change could also affect the price of oil and the value of the US dollar.
People who study markets are watching to see how much this will change the money flow in India.
US and Japan coordinated intervention on August 3, 2024, strengthening the yen against the dollar.
The move was the first joint intervention since 2011, following a joint statement issued in September 2025.
Japan may have sold up to $59 billion in securities to support the yen, while the US intervened to protect the dollar and manage bond‑yield expectations.
Indian markets are exposed to the yen through carry trades, with about $21 billion of yen‑carry trade exposure (~2.2% of FII holdings).
A stronger yen could trigger unwinding of carry trades, potentially leading to short‑term FII outflows and affecting commodity prices and the dollar index.
- Who
- US and Japan finance ministries
- What
- Coordinated intervention in the Japanese currency market
- When
- August 3, 2024
- Where
- Tokyo, Japan and Washington, D.C., USA
- Why
- To curb excessive yen volatility and manage bond‑yield expectations
- Intervention date
- August 3, 2024
- Currency affected
- Japanese yen
- Peak yen level
- 155.23 per dollar
- Estimated yen carry trade exposure
- $21 billion
- Joint statement issued
- September 2025
- Japanese securities sold
- $59 billion