U.S. Treasury intervenes to support yen after Japan steps in: FT
The U.S. Treasury intervened in currency markets by purchasing Japanese yen to help stabilize the currency, which has recently hit 40-year lows. This rare joint effort with Japan aims to curb speculative trading and market volatility.
Why it matters
Currency intervention by major economies can have significant impacts on global trade, inflation, and international financial stability.
The U.S. Treasury bought yen on Friday to support the battered Japanese currency, the Financial Times reported , marking Washington's first yen-buying intervention with Tokyo in more than a decade as it languishes near 40-year lows.
The Federal Reserve Bank of New York sold euros for yen on behalf of the Treasury through Goldman Sachs and Morgan Stanley , the FT said, citing people familiar with the matter. The report did not indicate any amounts of yen purchased.
Earlier on Friday, the Treasury informed a number of banks that it might intervene in the yen market and that they should "stand ready for future action," a source familiar with the matter told Reuters.
A Reuters photo of Treasury Secretary Scott Bessent's notepad during a cabinet meeting at Camp David in Maryland showed the words "To Do," followed by "Buy Japanese Yen (JPY) $5-10 bil."
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