US Treasury Intervenes in Yen Market for First Time in Over a Decade
The US Treasury has made its first yen-buying intervention in over a decade to support the Japanese currency, which has been battered near 40-year lows.
According to the Financial Times, the Federal Reserve Bank of New York sold euros for yen on behalf of the Treasury through Goldman Sachs and Morgan Stanley. The exact amount purchased is not specified.
The move comes as Japan's economy faces significant challenges, with the country selling as much as $58.97 billion worth of foreign currencies to buy yen on Thursday alone, according to central bank data.
A potential policy to address the yen's weakness may be unveiled by Japan and the US as early as next week, aimed at stabilizing markets and preventing speculative bets from driving down the currency further.