U.S. Treasury Secretary Scott Bessent said the United States and Japan jointly intervened in the foreign-exchange market on July 31, buying roughly $53 billion to $59 billion to support the yen. He warned that the move could trigger an unwind of yen carry trades, a development that may pressure risk assets including Bitcoin. According to CryptoBriefing, the operation marked the first coordinated intervention by Washington and Tokyo since 2011, signaling that the U.S. sees yen weakness as a risk to the global financial system. The report also pointed to historical precedent from July 2024, when a Bank of Japan rate hike set off a carry trade unwind that led to sharp volatility in the crypto market. This time, the intervention could accelerate a rotation of capital away from risk assets.
U.S. Treasury Secretary Scott Bessent said the United States and Japan jointly intervened in the foreign-exchange market on July 31, purchasing about $53 billion to $59 billion to support the yen.
Bessent warned that the move could force an unwind of yen carry trades and, in turn, hit risk assets such as Bitcoin.
First coordinated action since 2011
According to CryptoBriefing, the intervention was the first coordinated move by the U.S. and Japan since 2011, indicating that Washington views yen weakness as a risk to the global financial system.
The report added that historical data showed a similar carry trade unwind in July 2024, after the Bank of Japan raised rates, led to sharp swings in the crypto market. This latest intervention could speed up capital outflows from risk assets.
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