The US Treasury has confirmed spending approximately $500 million in euros to support the Japanese yen during a coordinated intervention with Japan on July 31. The Federal Reserve Bank of New York detailed the transaction in its latest quarterly foreign-exchange intervention report, released Thursday.
The New York Fed acted as the fiscal agent for the Treasury, purchasing ¥79.4 billion in the spot foreign exchange market. This was funded by selling euros from the Exchange Stabilization Fund. At current exchange rates, the transaction amounted to around $497 million.
The report reaffirms earlier indications that the US had intervened to stabilize the yen. This marks a significant move in global currency markets, highlighting the Treasury's use of its euro reserves to influence exchange rates.