US Treasury Steps in to Support Yen After Japan Intervenes

The US Treasury Department has intervened to support the yen for the first time in over a decade. According to reports, the US bought yen on Friday, marking Washington's first direct intervention with Tokyo since 2011.

The move comes as Japan struggles to stem its currency's weakness, which has reached near 40-year lows. The yen has been under pressure from speculative bets and market concerns over Japan's ability to intervene in the foreign exchange markets.

The US Treasury's intervention was done through Goldman Sachs and Morgan Stanley, with the Federal Reserve Bank of New York selling euros for yen on behalf of the Treasury. While the exact amount purchased is not disclosed, reports indicate that Japan may have sold as much as $58.97 billion to buy yen on Thursday.

The announcement of potential intervention by the US helped boost the yen, with a notable jump during late afternoon trading. The dollar dropped to about 157.6 yen just before 5 p.m. EDT from about 158.9 yen around 4:14 p.m., LSEG data showed.