US Catches ECB Off Guard with Surprise Currency Intervention

The US Treasury Department caught the European Central Bank (ECB) off guard by informing them of its decision to intervene in the currency markets after it had already executed a large sale of euros for yen. According to the Financial Times, citing people familiar with the matter, the ECB was only informed about the transaction on Saturday, three days after it took place on July 31. This move has raised eyebrows among European officials and economists, who are questioning the transparency of the US's actions.

The intervention was reportedly aimed at stabilizing the yen, which had been experiencing significant volatility in the wake of Japan's economic struggles. The ECB President, Christine Lagarde, and Treasury Secretary Scott Bessent spoke about the transaction on Saturday, but details of their conversation remain scarce. One person familiar with the matter stated that Lagarde and Bessent discussed the transaction after it had already been executed.