Yen Soars as Japan and US Intervene in Currency Market
The Japanese yen surged to its strongest level against the US dollar in nearly four months, hitting the lower 157 range before authorities stepped in to intervene. The currency briefly traded at 157.24 per dollar on Friday, a significant increase from nearly four-decade lows.
According to Reuters, a photo taken during a meeting of President Donald Trump's Cabinet showed a to-do list in front of US Treasury Secretary Scott Bessent indicating U.S. purchases of $5 billion to $10 billion worth of Japanese yen. The move was confirmed by market and government sources as the result of a massive currency intervention by Japan.
The intervention is part of a joint effort between Tokyo and Washington to support the Japanese currency via outright purchases, marking the first such efforts in nearly 30 years. Japanese Finance Minister Satsuki Katayama declined to comment on whether authorities had intervened but stated that they 'are always acting with vigilance.'