US Treasury Intervenes in Yen, Oil Prices Plummet Amid Iran Deal Hopes

The US Treasury Secretary Scott Bessent revealed that the Federal Reserve repo facility was used for a joint intervention in the Japanese yen, marking the first coordinated operation since 2011 and the first joint support of the yen since 1998.

The intervention aimed to prevent Japan from selling large amounts of US Treasuries, which could have destabilized the dollar. Bessent emphasized that the Treasury remains attentive and in close communication with Japanese counterparts and would not hesitate to participate in further joint interventions if needed.

Oil prices fell sharply after President Donald Trump hinted at a potential deal with Iran, which could lead to a lasting ceasefire between the two countries. The US nonfarm payrolls data is also due this week, which will provide insights into the labor market and its impact on the Federal Reserve's monetary policy.