US Treasury Eyes Massive Yen Intervention

US Treasury Secretary Scott Bessent's notes from a meeting at Camp David reveal that he was considering buying between $5 billion to $10 billion worth of Japanese yen, according to a Reuters photograph taken on July 31.

The photograph shows the notepad with the words 'To Do' followed by 'Buy Japanese Yen (JPY) $5-10 bil', and Bessent's name card is visible above it. The Treasury spokesperson did not immediately respond to a request for comment on the contents of the notepad.

Earlier that day, Reuters reported that the Treasury had notified banks that they may intervene in the yen market, citing a source familiar with the situation. Japanese authorities had already stepped in to prop up the yen earlier on July 31, triggering a strengthening of the currency during morning trading hours.

The dollar dropped by about 0.8% against the yen during late afternoon trading on July 31, from around 158.9 yen at 4:14 pm to 157.6 yen just before 5 pm.