International News 04 August 2026
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Japan and U.S. Confirm Rare Joint Yen Intervention to Stabilize Currency
Japan's Ministry of Finance confirmed that Japan and the United States jointly intervened to buy the yen and said they stand ready to take further action if needed, marking the first coordinated currency intervention between the two countries since 2011. According to Reuters, officials said the move was aimed at countering excessive volatility after the yen weakened to its lowest level in four decades. Analysts noted that the rare bilateral intervention highlights both countries' determination to prevent further declines in the yen and a broader selloff in Japanese government bonds that could spill over into global markets by pushing U.S. Treasury yields even higher. The ministry said Friday's intervention, conducted in coordination with the U.S. Treasury Department, was intended to address "excessive volatility and disorderly movements" in the yen and pledged close communication with Washington while leaving the door open for additional joint intervention. President Donald Trump said the United States supported Japan "as a sign of friendship and to help the global economy." Following the confirmation, the U.S. dollar fell 0.6% against the yen to an intraday low of 156.50 in Asian trading. Japan's top currency diplomat, Atsushi Mimura, added that the government would continue coordinating currency policy with the Bank of Japan to curb further yen weakness.
Trump Says U.S.-Iran Talks to Resume as Diplomatic Efforts Gain Momentum
U.S. President Donald Trump said negotiations with Iran will begin on Monday, but declined to set a deadline for reaching an agreement after revealing that he had called off a planned military strike to allow more time for diplomacy. Trump said he hoped the talks would lead to the full reopening of the Strait of Hormuz and resolve the long-running dispute over Iran's nuclear program. In a Truth Social post on Saturday, he claimed that Iran and several Middle Eastern countries had requested additional time to finalize an agreement that would deliver the "immediate, full, and complete" reopening of the strategic waterway while ending Iran's nuclear threat. Speaking to reporters upon returning to Washington from New Jersey on Sunday, Trump confirmed that negotiations would begin later on Monday but did not disclose the location or participants. While refusing to impose a formal deadline on Tehran, he reiterated his preference for a diplomatic solution, saying he did not want further loss of life. Over recent months, Trump has repeatedly threatened to intensify the conflict with Iran—launched jointly with Israel in late February only to extend additional time for negotiations. The latest diplomatic push comes after the conflict expanded beyond the Gulf into the Red Sea and even reached facilities in the Mediterranean region, underscoring the widening geopolitical risks.
U.S. Treasury Yields Ease as Renewed Iran Talks Weigh on Oil Prices
The yield on the 10-year U.S. Treasury retreated from an 18-month high on Monday as oil prices fell after U.S. President Donald Trump announced that negotiations with Iran would resume, easing concerns that the conflict could fuel higher inflation. According to Reuters, renewed optimism over diplomacy reduced fears of prolonged disruptions to global energy supplies and improved sentiment in the U.S. bond market. Before the prospect of renewed talks emerged, Iran had disrupted traffic through the Strait of Hormuz—a vital shipping route that handled about 20% of global oil and liquefied natural gas (LNG) trade before the conflict—driving energy prices higher and stoking broader inflation concerns. On Monday, renewed hopes for a diplomatic breakthrough pushed U.S. crude futures below US$80 per barrel, supporting demand for U.S. Treasuries and sending benchmark government bond yields lower.