US and Japan Unite Against Yen Weakness
US Treasury Secretary Scott Bessent stated that the US will participate in further joint intervention to support Japan's yen, which has been experiencing 'disorderly' movements. This is backed by President Trump, who described joint intervention as a sign of friendship with Japan and expects Washington to reap a financial benefit from helping its ally.
The US Treasury Exchange Stabilization Fund (ESF) held USD13.131 billion in euros at the end of March, and the Federal Reserve System Open Market Account (SOMA) held USD13.152 billion in euros. The ESF had the capacity to sell up to USD26.283 billion in euros for yen, which is a smaller scale than Japan's intervention.
Japan has estimated to have purchased around USD53 billion of yen on Thursday according to the BoJ’s daily current account balances. Having the US on board sends a stronger signal of support to market participants rather than the scale of yen purchases undertaken by the US.