Currency traders brace for potential US-Japan joint intervention Monday

The last time the US and Japan teamed up to intervene in currency markets, Bitcoin was trading under $10. That was 2011. Now, with the yen at its weakest level against the dollar since 1986, both countries appear ready to do it again. Currency traders are bracing for a joint US-Japan intervention expected to be confirmed on August 3, with the Bank of Japan already purchasing yen during New York trading hours ahead of the formal announcement. US Treasury Secretary Scott Bessent has reportedly outlined a potential intervention size of $5 billion to $10 billion in yen purchases. What’s actually happening Japanese Finance Minister Satsuki Katayama has been preparing for joint action with US authorities to stabilize the currency. The US Treasury went a step further on August 1, issuing warnings to primary banks to prepare for yen-buying trades. The intervention mechanics work like this: both countries’ central banking authorities buy yen on open markets using dollar reserves, artificially boosting demand and pushing the yen’s value higher. The Bank of Japan has already started purchasing yen during New York trading hours, suggesting the operation is effectively underway before any forma...