US Treasury Warns Banks of Potential Yen Intervention
The US Treasury has notified major banks of potential intervention to support the Japanese yen. This move comes after aggressive buying operations by Japanese authorities aimed at stabilizing the currency.
The yen rallied against the dollar on Friday, trading at 159.09 per dollar, following reports of potential U.S. involvement. This surge marks the strongest weekly rise since February, with the currency having fallen to a multi-decade low of 163.65 on Thursday.
A direct intervention by the US Treasury would be the first such action since a coordinated G7 stabilization effort in 2011 following Japan's earthquake and tsunami.