Washington and Tokyo conducted a joint yen-buying operation on July 31 and August 1, marking the first coordinated intervention between the two nations since 2011. The yen had fallen to 163.99 per dollar on July 23, a level not seen in roughly 40 years. Japan deployed approximately 8.45 trillion yen ($53 billion) to defend its currency, while the US contribution was estimated at $5 to $10 billion. This roughly $60 billion combined intervention risks triggering a violent unwind of yen carry trades, with potential spillover effects on equities, bonds, and cryptocurrency markets.
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