Bessent's Yen Buy Signal Sparks Intervention Speculation

U.S. Treasury Secretary Scott Bessent sparked speculation about a potential intervention in the Japanese yen market after a photograph surfaced showing his notepad with 'To Do' followed by 'Buy Japanese Yen (JPY) $5-10 bil.'

The note was taken during a cabinet meeting at Camp David, Maryland, and appears to have been written around 11:33 EDT. The Treasury had earlier put banks on alert for a possible U.S. intervention in the yen market, according to Reuters.

Just hours before the photograph was taken, Japanese authorities stepped in to prop up the yen, causing its value against the dollar to strengthen substantially during morning trading hours.

LSEG data shows that the dollar dropped from about 158.9 yen at around 4:14 p.m. to about 157.6 yen just before 5 p.m., a drop of about 0.8%. The U.S. Treasury has not intervened in the yen market since 2011, when it joined other G7 countries in a coordinated action after a devastating earthquake and tsunami hit Japan.