US Treasury Joins Japan in Yen Intervention, Threatening Bitcoin Carry Trades
The US Treasury joined Japan's effort to support the yen after preliminary data showed Tokyo may have deployed almost $96 billion over two days, putting Bitcoin traders on alert for a possible unwind of positions financed with cheap Japanese capital.
According to Reuters, the Bank of Japan spent as much as $58.97 billion during an initial intervention and another $36.58 billion in a coordinated operation with the US Treasury.
The current intervention lifted the yen from a 40-year low near 164 per dollar to 155.20 on Monday, but it gave back part of that gain on Tuesday as traders assessed whether the US and Japan would intervene again.
Treasury Secretary Scott Bessent said, 'Treasury remains attentive and in close communication with our counterparts at MOF and BOJ. We will not hesitate to participate in further joint intervention.'