US Joins Japan in $5B–$10B Yen-Buying Operation, First Such US Move in Over a Decade

US Treasury Secretary Scott Bessent said the United States is coordinating with Japan to intervene in currency markets by purchasing Japanese yen, marking Washington's first yen-buying operation in more than 10 years. Bessent confirmed on Aug. 1 that the plan targets roughly $5 billion to $10 billion in yen purchases. The details first drew attention a day earlier, July 31, after cameras captured Bessent's handwritten notes during a Camp David cabinet meeting outlining the proposed range. In public remarks, Bessent described the action as a response to "disorderly yen movements." The yen has been trading near levels not seen in almost four decades against the US dollar. The operation stands out for its coordination. Bessent said US officials worked directly with Japan's Ministry of Finance and the Bank of Japan, deploying US dollars alongside Japanese reserves. Bessent also floated expanding the Federal Reserve's FIMA Repo Facility as a supporting step. The facility allows foreign central banks to temporarily turn US Treasury holdings into dollars, and a larger program could give institutions such as the Bank of Japan more room to manage liquidity without resorting to rapid sales of US government debt. Market implications extend beyond FX. For Bitcoin, direct US dollar selling to buy yen is marginally negative for the dollar. Historically, a softer dollar has tended to align with firmer Bitcoin performance, as BTC is dollar-denominated and becomes cheaper for non-US buyers when the greenback weakens. Traders are also watching the FIMA proposal. Greater access to dollar liquidity without forced Treasury selling could reduce the risk of disorderly moves in the US bond market.