US Treasury intervenes to support yen after Japan steps in, FT reports
The US Treasury intervened in currency markets to support the Japanese yen, which has hit 40-year lows against the dollar. This rare move, coordinated with Japan, aims to stabilize the currency and deter speculative trading.
Why it matters
Signals a significant shift in US-Japan economic policy and potential market volatility regarding global currency values.
Yen and US dollar banknotes are seen in this illustration taken Mar 19, 2025. (Photo: REUTERS/Dado Ruvic)
The US Treasury bought yen on Friday (Aug 1) 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.
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