US Treasury Steps In to Support Yen in Coordinated Effort with Japan

The US Treasury has taken a significant step to support the yen, intervening in the currency market for the first time since 2011. According to the Financial Times, the Treasury conducted a sale of euros to buy yen through Goldman Sachs and Morgan Stanley on behalf of the Federal Reserve Bank of New York.

The reported action comes as Japan's currency languishes near 40-year lows, prompting Tokyo to take repeated efforts to stem its weakness. Data from central banks indicates that Japan may have sold up to $58.97 billion in dollars to buy yen on Thursday alone.

The move is seen as a coordinated effort between Washington and Tokyo to stabilize the market, with the US Treasury informing banks earlier this week that they should be prepared for potential intervention.