Yen Spikes Against USD, Japan Authorities Intervene with Massive Yen-Buying Measures
The Japanese yen surged to its strongest level in mid-May against the US dollar, reaching as low as 157.24 per USD on Friday (Jul 31). The sudden spike has prompted a massive intervention by Japan's currency authorities.
A photo taken during a meeting of US President Donald Trump’s Cabinet revealed a to-do list indicating that the US Treasury Secretary Scott Bessent planned to purchase $5-10 billion worth of yen. This move was confirmed by Japanese government sources, who reported a massive yen-buying intervention by currency authorities.
On Friday, the Federal Reserve Bank of New York sold euros to buy yen on behalf of the US Treasury, marking the first joint efforts by Tokyo and Washington to support the Japanese currency via outright purchases in nearly 30 years.