Yen Extended 3-Day Advance to 5% after Japan and U.S. Treasury Confirmed Joint Intervention

Akira Ito
03 Aug, 2026
Tokyo

Japan's benchmark indexes fell sharply on Monday following a joint currency market intervention to prop up the faltering yen. 

The Nikkei 225 Stock Average plunged as much as 2%, the broader TOPIX declined as much as 3%, and the yen rebounded to 156.34 against the U.S. dollar. 

The yen rebounded 5% over three trading sessions after the Finance Ministry confirmed it carried out a yen-buying operation with the U.S. Treasury after the currency dropped to four-decade lows.  

Japanese authorities signaled their willingness to conduct additional coordinated interventions if needed. 

Last month, the yen dropped to a four-decade low of 163.56 against the U.S. dollar, amid mounting fiscal deficit concerns, persistent interest rate differential, and mounting pressures from elevated energy costs. 

The yen is likely to resume its slide over the months if the U.S. Federal Reserve lifts its rates to combat intensifying and deepening inflationary pressures. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average fell 0.9% to 63,795.53, and the broader TOPIX decreased 1% to 3,962.71.

Fanuc plunged 15% to ¥6,064.0 after the factory automation company reported solid financial results in the second quarter, but the company's sales outlook fell short of investor expectations. 

Net sales increased 17% to 231.1 trillion yen from 196.3 trillion yen, net income advanced 34.7% to 51 billion yen from 37.8 billion yen, and earnings per share rose to 54.63 yen from 40.56 a year ago. 

Fanuc revised its full-year revenue to rise 10.5% to 948.1 trillion yen, net income to advance 18.9% to 198 trillion yen, and earnings per share to 212.18. 

Fanuc stock fell sharply after the company's weak sales and earnings growth guidance as the company battled a weakening domestic sales outlook, rising cost pressures, and intensifying global competitive pressures from China.