Bessent Joins Japan in $5-10 Billion Yen Intervention Push

US Treasury Secretary Scott Bessent has joined forces with Japan to intervene in the yen's value, calling for it to be bought by $5-10 billion. This marks a significant shift in the currency's trajectory, which had been experiencing one of its longest declines since its inception. The yen appreciated 1% against both the US dollar and euro on Friday, with an intraday jump of over 3% versus the greenback.

The intervention was fueled by direct purchases of the yen, calls from officials to banks that trade the currency, and verbal support from Bessent and Japanese Finance Minister Satsuki Katayama. This coordinated effort has raised the stakes for traders betting against the yen, making it more difficult for speculators to sell the currency.

According to Bloomberg, Japan bought yen and sold US dollars during New York trading on Friday, while the Financial Times reported that the Federal Reserve Bank of New York sold euros to buy yen on behalf of the US Treasury Department. At least two major US banks were asked by the New York Fed to check the rate on the yen against the euro.