US Treasury Joins Japan in Rare Yen Intervention

The US Treasury and Japan have coordinated to support the Japanese currency, with the US purchasing yen through Goldman Sachs and Morgan Stanley. This marks a rare joint intervention between the two countries, with the last direct US support for the yen occurring in 2011 after Japan's earthquake and tsunami disaster.

The move comes as markets watch for broader policy steps next week, with some predicting that the US and Japan may unveil a joint policy to address the yen's weakness. Japanese authorities have sold as much as $58.97 billion to buy yen on Thursday, according to central bank data.

The dollar fell to about 157.6 yen in late trading after news of possible Treasury intervention emerged, down from nearly 164 yen highs. The US may also tap the Fed's FIMA Repo Facility to maintain dollar liquidity without selling US Treasuries.