US Treasury Warns Banks of Possible Yen Intervention

The US Treasury has informed several banks that it may intervene in Japan's yen market on Friday. The notice, sent through the Federal Reserve Bank of New York, comes after Japanese authorities stepped in to prop up the yen yesterday. This move sets the currency up for its biggest weekly rise since February and pulls it off four-decade lows against the dollar.

The US Treasury Secretary Scott Bessent said that the yen 'seems very undervalued to me' and praised Japanese Prime Minister Sanae Takaichi's economic policies. He also stated that excess volatility in the yen is not healthy and that it has 'substantially overshot what would be called an equilibrium price.'

This intervention news pushed the yen higher against the dollar, last trading at 159.61 to the dollar, up 0.06% on the day.