US Treasury intervenes to support yen after Japan steps in: Financial Times
The reported action would be the US Treasury’s first direct support for the yen since 2011.
The United States Treasury intervened on July 31 to support the Japanese yen, which had been struggling at 40-year lows, according to the Financial Times. This marked the first time Washington had stepped in alongside Tokyo since 2011, when coordination helped stabilize markets after Japan's earthquake and tsunami disaster. The Federal Reserve Bank of New York facilitated a sale of euros to buy yen on behalf of the Treasury, through Goldman Sachs and Morgan Stanley, according to the FT's sources.
A Treasury official had previously informed banks they should be "stand ready for future action" and had reportedly indicated a potential $5-10 billion yen purchase. The intervention came as US dollars dropped to near 157.6 yen in late trading, down from around 158.9 yen earlier in the day. Japan had reportedly sold up to $58.97 billion to buy yen on July 30, indicating efforts to counter the currency's weakness.
The Japanese Finance Ministry later posted on X that the country's monetary authorities were prepared to use various tools to maintain market liquidity, including potential access to the Federal Reserve's FIMA Repo Facility.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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