U.S. Treasury Steps In to Bolster Weakened Japanese Yen

The U.S. Treasury has intervened in the foreign exchange market to support the Japanese yen, which has been battered by speculation and reached near 40-year lows.

In a move coordinated with Goldman Sachs and Morgan Stanley, the Treasury bought yen on behalf of the Federal Reserve Bank of New York, signaling Washington's first direct intervention in the yen market since 2011.

The Treasury informed several banks that they should be 'ready for future action' and may unveil a policy as early as next week to address the yen's weakness, according to Kyodo News.