US Treasury Steps In to Support Yen Amid Record Lows
The US Treasury Department has intervened to support the yen after Japan's efforts to stem its weakness. The intervention comes as the Japanese currency struggles near 40-year lows, with the dollar rising to nearly 164 yen, its highest since 1986.
The Treasury purchased yen on Friday through Goldman Sachs and Morgan Stanley, with the New York Fed selling euros for yen on behalf of the Treasury. This marks Washington's first direct support for the yen in over a decade, with coordination from fellow Group of Seven nations during Japan's earthquake and tsunami disaster in 2011.
The intervention has helped boost the yen, with a notable jump during late afternoon trading. The dollar dropped to around 157.6 yen just before 5 p.m. EDT from about 158.9 yen around 4:14 p.m.
Japan may have sold as much as $58.97 billion to buy yen on Thursday, central bank data indicated. Tokyo intervened again in New York trading hours on Friday, and the Finance Ministry has assured markets that Japan's monetary authorities have a broad range of tools to address market liquidity needs.