US Treasury Intervenes in Yen Market for First Time in Over a Decade

The US Treasury's intervention in the foreign exchange market has continued, with a purchase of yen on Friday to support the battered Japanese currency. The Financial Times reported that this was the first such intervention by Washington in over a decade, as the yen languishes near 40-year lows.

The Treasury bought yen through Goldman Sachs and Morgan Stanley, with the Federal Reserve Bank of New York selling euros for yen on its behalf. This move is likely to have implications for the EUR/USD pair, which is currently testing long-running downtrend resistance in early Asian trade.

Meanwhile, the USD/Yen pair has fallen 0.5% to 156.64 as a result of this intervention. The pair's decline may be influenced by the Japanese yen, with some analysts suggesting that further joint intervention between Washington and Tokyo is possible if necessary.