US Treasury Signals Possible Yen Intervention After Tokyo's Move
The US Treasury has sent a confidential alert to banks indicating it may intervene in the Japanese yen market. The move comes after Tokyo intervened on Thursday, giving the currency its biggest weekly gain since February as it rebounded from four-decade lows against the dollar.
The USD/JPY pair rose to 159.09 yen per dollar on Friday, up from around 163.65 per dollar on Thursday. Atsushi Mimura, a Tokyo currency diplomat, declined to comment on possible intervention but hinted at US involvement in efforts to curb the yen's decline.
According to MUFG analyst Lee Hardman, the market view is that the New York Fed may conduct rate checks and keep traders nervous about possible further intervention. The U.S. Treasury Secretary Bessent posted a message stating that the Treasury supports 'strong relationships and close coordination' with Japanese authorities but did not confirm preparations for intervention.