US Treasury tells banks further yen intervention possible; yen surges
US Treasury officials told major banks that further intervention to support the Japanese yen could be on the table. The yen surged sharply against the dollar following the disclosure.
US Treasury officials told major banks that additional intervention to support Japan's weakening currency could be on the table, according to people familiar with the discussions. The disclosure sent the yen sharply higher against the dollar in currency markets.
Japan's Ministry of Finance officials stressed that previous interventions were aimed at preserving market stability rather than targeting a specific exchange rate. Analysts said the coordination between Washington and Tokyo appears designed to limit volatility in currency markets.
Market participants said the signal of further intervention prompted rapid shifts in investor positioning. Economists said the yen's near-term trajectory could also influence global trade flows.
Read next
Rare Japan-South Korea joint intervention shakes up yen and won
Japan and South Korea carried out a rare joint intervention in currency markets, triggering sharp moves in the yen and the won. The two currencies are so tightly coupled that a joint intervention could double the impact of acting alone.
Argentina's central bank reform bill reaches the lower house: what would change
Markets read Fed's Warsh as dovish, but his own words suggest a rate hike
Bank of Japan holds rates steady, signals hawkish tilt on inflation
