Why Japanese Yen (JPY) rose 0.94% on August 4, 2026

Japanese Yen (JPY) rose 0.94% on August 4, 2026 — Bessent backs yen without Treasury sales.

Reports emerged that U.S. Treasury Secretary Bessent may pursue yen support without requiring Treasury sales, potentially involving Federal Reserve coordination to prop up the currency.

Coordinated support for the yen reduces USD strength and carry-trade unwind pressure, allowing the BoJ to maintain accommodative policy without external currency warfare — a positive signal for JPY and Japanese equities.

Japan (Yen & Equities) has been locked in a reflexive loop as BoJ policy expectations shifted; the carry-trade unwind stalled momentum, but Bessent's yen support comments signal potential external backing, easing the…

If Treasury or Fed coordination is denied, the plan is delayed without intervention, or USD strength reasserts itself, the yen support thesis collapses.