U.S. Treasury Intervenes to Support Yen Amid Japanese Efforts
The U.S. Treasury reportedly intervened in foreign exchange markets by purchasing yen on Friday, marking its first such action since 2011 and the first coordinated effort with Japan in over a decade. The intervention came as the yen approached historic lows against the dollar. According to reports citing unnamed sources, the Federal Reserve Bank of New York executed trades through Goldman Sachs and Morgan Stanley, though no specific amounts were disclosed. Earlier that day, Treasury Secretary Scott Bessent was photographed at Camp David with notes indicating a potential $5-10 billion yen purchase. Japan also reportedly intervened on Thursday by selling up to $58.97 billion in foreign currency to support the yen. The Japanese Finance Ministry emphasized its readiness to use available tools, including access to the Federal Reserve's FIMA repo facility. The market reacted positively to these interventions, with the dollar dropping from around 158.9 yen to about 157.6 yen during late afternoon trading.
Topics: foreign exchange market U.S. Treasury yen intervention