U.S. Treasury Intervenes to Support Yen Amid Japanese Efforts
The U.S. Treasury reportedly intervened in the foreign exchange market by purchasing yen on Friday, according to a Financial Times report citing unnamed sources. This marks Washington's first coordinated intervention with Tokyo since 2011 and comes as the yen approaches historic lows against the dollar. The Federal Reserve Bank of New York executed the purchase through Goldman Sachs and Morgan Stanley, though no specific amounts were disclosed. Earlier in the day, Treasury officials informed several banks that they might intervene in the yen market and urged them to prepare for potential action. A photo from a cabinet meeting showed U.S. Secretary of the Treasury Scott Bessent noting plans to buy up to $5-10 billion worth of Japanese yen. Japan also reportedly intervened on Thursday by selling nearly $59 billion in dollars to support its currency. The news temporarily boosted the yen, with the dollar falling from around 158.9 yen to about 157.6 yen during late afternoon trading. The U.S. and Japan may jointly announce a policy next week aimed at curbing speculative bets against the yen.
Topics: foreign exchange market U.S. Treasury yen intervention