US Treasury Steps In To Support Struggling Yen Amid Currency Market Volatility

The US Treasury has reportedly stepped in to support the Japanese yen, which has been under pressure due to volatility in currency markets. According to Reuters and other financial media, the Treasury informed banks of probable market actions through the Federal Reserve Bank of New York.

Treasury Secretary Scott Bessent stated that the yen is 'substantially undervalued' and that the volatility of the currency market 'is not desirable'. Japanese officials have emphasized repeatedly that they are in close touch with Washington on concerns regarding foreign currencies.

The synchronised move came after Japanese officials stepped into the currency market to halt the yen's decline, which hit depths not seen in decades. The currency surged from earlier lows against the U.S. dollar during the week as traders factored in the potential of aggressive government action.