US Treasury Intervenes to Support Slumping Yen

The US Treasury Department has intervened in the foreign exchange market to support the Japanese yen, which has been under pressure and trading near 40-year lows. This marks Washington's first direct intervention in the yen market with Tokyo in over a decade.

The Treasury purchased yen through Goldman Sachs and Morgan Stanley, which sold euros for yen on its behalf. The exact amount of yen bought is not disclosed.

This move follows Japan's repeated efforts to stem the yen's weakness, including intervention in New York trading hours on Friday. Tokyo has also signaled its willingness to use available tools, including access to the Federal Reserve's standing Foreign and International Monetary Authorities (Fima) Repo Facility.