US Treasury Warns Banks of Possible Yen Intervention Ahead of Market Action

The U.S. Treasury has warned major banks to be prepared for possible market intervention on Friday, following Japan's recent move to support its currency.

Last week, Japanese authorities spent an estimated $53 billion to $59 billion to prop up the yen, which had fallen to near a four-decade low against the U.S. dollar.

The warning comes from U.S. Treasury Secretary Scott Bessent, who stated that the yen appears 'very undervalued' and excessive volatility is not healthy for markets.

Bessent also noted that the yen has moved beyond its normal or equilibrium value.