US Treasury Weighs In On Struggling Yen

The US Treasury has informed several banks that it may intervene in the Japanese yen market on Friday. This move comes after Japan's central bank, the BOJ, attempted to prop up the currency but failed.

Japan's BOJ has been struggling to contain the decline of the yen. According to some calculations, they are about 100 basis points behind in terms of rate hikes needed to stabilize the currency.

The US Treasury informed banks through the Federal Reserve Bank of New York that they should be prepared for potential future actions.

It is worth noting that Japan's recent attempt to prop up the yen involved a record $140 billion spent across all markets, with $90 billion allocated on EBS (Electronic Broking Service) alone.