US Treasury Steps In to Bolster Struggling Yen

The US Treasury has intervened in foreign exchange markets to bolster the battered yen, which has been trading near 40-year lows. This marks Washington's first direct intervention in the Japanese currency since 2011, when it coordinated with other Group of Seven nations to stabilize markets following Japan's earthquake and tsunami disaster.

According to a report by the Financial Times, the Treasury bought yen on Friday through Goldman Sachs and Morgan Stanley, which sold euros for yen on its behalf. The exact amount purchased is not disclosed in the report.

The US Treasury informed banks earlier this week that they should be prepared for future action, and a note from Treasury Secretary Scott Bessent's notepad suggests a potential $5-10 billion intervention. Japan and the US are also considering unveiling a policy to address the yen's weakness as early as next week.