US Treasury Hints at Further Yen Intervention as Oil Prices Plummet

US Treasury Secretary Scott Bessent hinted at further intervention in the yen market after the US and Japan coordinated their first joint foreign-exchange operation since 1998 last week. The move came as the USD/JPY rate reached a nearly 40-year low of almost 164, according to data from TradingView.

The operation was facilitated through the Federal Reserve's Foreign and International Monetary Authorities (FIMA) repo facility, which allows foreign central banks to access dollar liquidity without selling US Treasuries. This move is seen as a self-preservation measure by Washington to avoid volatile markets driven by Japan's fiscal policies extending to the US Treasury market.

Bessent emphasized that the FIMA facility could be used again in the future, stating that 'we will not hesitate to participate in further joint intervention.' He also noted that Treasury remains attentive and is in close communication with its Japanese counterparts at the Ministry of Finance (MOF) and Bank of Japan (BOJ).

In other markets, oil prices fell sharply after US President Donald Trump hinted at a possible deal with Iran, sparking hope for a lasting ceasefire between the two nations. This development has significant implications for global economic stability and could impact the price of Bitcoin, which remains under pressure due to the ongoing Coldcard wallet hack.