Bessent's Yen Note Sparks Market Intervention Speculation

US Treasury Secretary Scott Bessent's handwritten note, captured during a cabinet meeting at Camp David on July 31, hinted at potential intervention in the yen market. The image showed a notepad with the underlined heading 'To Do,' followed by the entry: 'Buy Japanese Yen (JPY) $5-10 bil.'

No other text was visible on the notepad, and the US Treasury did not immediately respond to requests for comment on the contents of the note or whether the department had intervened to support the yen. This revelation came after Reuters reported earlier that day the US Treasury might intervene in the yen market.

The Japanese authorities had already taken action to bolster the yen earlier on July 31, contributing to a sharp appreciation of the currency during trading in Tokyo. Market data showed another significant strengthening of the yen later in the day, with the US dollar falling from around 158.9 yen at approximately 4:14 p.m. to about 157.6 yen shortly before 5:00 p.m., a decline of roughly 0.8%.