US Treasury Warns Banks: Yen Intervention Possible This Week

The US Treasury has informed banks that it may intervene in the Japanese 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 comes after Japanese authorities stepped in to prop up the yen on Thursday.

A day earlier, data from the Bank of Japan (BoJ) showed an expected shortfall of 8.2 trillion yen in money market conditions, compared to forecasts for a surplus of 1.4 trillion yen to a shortfall of 1.73 trillion yen.