Treasury Secretary Hints at Yen Intervention with $5-10B Buy
U.S. Treasury Secretary Scott Bessent's handwritten note listing a potential purchase of $5 billion to $10 billion in Japanese yen has sparked speculation about a possible intervention in the currency market.
The note, captured during an open portion of a Camp David cabinet meeting, shows 'To Do' and 'Buy Japanese Yen (JPY) $5-10 bil' with Bessent's name card visible on the table.
Reuters reported that earlier on Friday, the Treasury had informed several banks it might intervene in the yen market, which led to a notable strengthening of the currency during morning trading.
Japanese authorities had already stepped in to bolster the yen earlier in the day in Tokyo, causing the dollar to fall from around 158.9 yen at 4:14 p.m. to roughly 157.6 yen just before 5 p.m., a decline of about 0.8%.
The U.S. Treasury has not intervened to support the yen since 2011, when it joined other G7 nations in a coordinated action following a major earthquake and tsunami in Japan.