The U.S. is using euros, not dollars, to prop up the yen, and it may backfire: ‘This kind of twist…undercuts the efficacy of U.S. participation’
- Posted on August 3, 2026
- By Fortune
- 1 Views
- 1 min read
In brief
In an unprecedented monetary intervention, the United States coordinated with Japan using euros instead of traditional dollar reserves to strengthen the weakening yen, pushing it to 157 per dollar. While this joint operation marks a significant policy shift, financial analysts question its long-term effectiveness. Experts warn that this unconventional approach fails to address fundamental economic imbalances between the two nations and may actually undermine the credibility of future U.S. interventions in currency markets.
Summary auto-generated by AI from the original publisher's content. Editorial standards.
The U.S. is using euros, not dollars, to prop up the yen, and it may backfire: ‘This kind of twist…undercuts the efficacy of U.S. participation’
The unusual funding method backed a joint U.S.-Japan move that lifted the yen to 157 per dollar, but economists say it won't fix underlying issues
