US Treasury Intervenes in Currency Market to Support Yen

The US Treasury intervened in the currency market for the first time in nearly 30 years to prop up the yen, using an unexpected mechanism. The intervention was a surprise move that caught many by surprise, with only a few details leaking out due to an accidentally photographed notepad.

The global dollar shortage has been squeezing foreign markets, and this intervention is part of a broader trend towards a global monetary reset. Economists had projected an unchanged unemployment rate and 83,000 new jobs for the month, but instead, the US lost 23,000 jobs in July.

The yen jumped against the dollar after a weak US employment report, with traders alert to the prospect of intervention just days after Japanese and US authorities jointly stepped into the foreign exchange markets. The dollar fell by as much as 1.1% to ...