US Treasury Joins Japan in Yen Support

The US Treasury intervened in the currency markets on July 31 to support the Japanese yen, which has been trading at near 40-year lows. The move marked Washington's first intervention in the yen market along with Tokyo in over a decade.

The Treasury bought yen through Goldman Sachs and Morgan Stanley, with the Federal Reserve Bank of New York conducting the sale on behalf of the Treasury. The exact amount of yen purchased is not specified in the report.

The intervention follows Japan's efforts to stem the yen's weakness, which has seen the currency drop significantly in recent weeks. Tokyo intervened again in the yen market on July 31, with data indicating that Japan may have sold as much as $58.97 billion to buy yen on July 30.