US Treasury Warns Banks of Possible Yen Intervention

The US Treasury has informed several banks that it may intervene in the yen market on Friday, according to a source familiar with the matter. The notice was channeled through the Federal Reserve Bank of New York and warned banks to be prepared for potential future action.

This development comes just one day after Japanese authorities stepped in to stabilize the yen, which has seen its biggest weekly rise since February. The currency is now off four-decade lows against the dollar.

The Treasury's warning to banks suggests that the US government may take steps to support the dollar or intervene in foreign exchange markets if necessary.