$10 Billion Yen Intervention Plan Revealed by US Treasury
A high-ranking official at the US Treasury Department, Scott Bessent, has inadvertently revealed a plan to intervene in the Japanese yen market. According to photographs taken during a recent cabinet meeting at Camp David, Bessent's notepad appears to show an order to buy up to $10 billion worth of yen.
The revelation has sparked questions about Washington's intentions and whether it is planning to support the yen against the dollar in one of the world's most sensitive markets. The US Treasury Department has not intervened in the foreign exchange market since 2011, when it participated alongside other G7 countries following a devastating earthquake and tsunami in Japan.
The potential intervention comes at a time when the yen's exchange rate is a contentious issue between the US and Japan. Tokyo has been struggling with severe depreciation of its currency, which increases the cost of imports. In response, Japanese authorities have repeatedly left open the possibility of market interventions to limit sharp fluctuations in the yen.
A Reuters report earlier that day had cited a source claiming that the US Treasury Department informed banks about potential intervention in the yen market within the same day.