US Treasury Warns Banks of Potential Yen Intervention After Japan's Move

The US Treasury Department has informed banks of a possible additional intervention in foreign exchange markets to support the yen. This move comes after Japan intervened on Thursday by buying yen and selling dollars.

The yen surged to its highest level since mid-May following this intervention, and the US Treasury is now considering further action.

Takinghi Kawanami et al reported that currency market participants have been told to prepare for a potential additional operation to buy Japanese currency. This has sparked concerns about the potential impact on global markets.