US Treasury Intervenes in Yen Market, Marks First Direct Intervention Since 2011

The US Treasury has stepped into the currency market to support Japan's struggling yen, marking Washington's first intervention in over a decade. According to the Financial Times, the Federal Reserve Bank of New York conducted a sale of euros to buy yen on behalf of the Treasury through Goldman Sachs and Morgan Stanley.

The reported action is seen as a response to Japan's efforts to stem its currency's weakness. Data from the Japanese central bank showed that Tokyo may have sold as much as $58.97 billion worth of dollars to buy yen on Thursday, signaling repeated attempts to stabilize the market.

The US Treasury's intervention comes after it informed several banks earlier this week that they should be prepared for potential action in the yen market. A photo of US Treasury Secretary Scott Bessent's notepad from a cabinet meeting at Camp David showed that he was considering purchasing $5 billion to $10 billion worth of Japanese yen.