US Treasury Joins Forces with Japan to Prop Up Yen Amidst Sharp Decline
The US Treasury has made its first coordinated intervention in currency markets with Japan since 2011 by buying Japanese yen, aiming to halt the yen's slide to 40-year lows.
The move marks a significant escalation in efforts to support the yen, which hit its weakest level against the dollar since 1986 last week, trading above 163 yen per dollar. The currency has since rebounded sharply, falling to 160.18 yen on Thursday and dropping further to 157.42 yen on Friday.
The Treasury's direct involvement in the market was first reported by multiple sources, with the Financial Times citing three people familiar with the matter as saying that the Federal Reserve Bank of New York sold euros and purchased yen on behalf of the Treasury through Goldman Sachs and Morgan Stanley.