The U.S. Treasury reportedly entered the market to buy yen on Friday after Japan moved to support its currency, according to a Financial Times report cited by Reuters. The step would mark Washington’s first yen-buying intervention alongside Tokyo in more than 10 years.
The reported action comes as the Japanese yen has been under heavy pressure and has hovered near levels not seen in roughly four decades. That prolonged weakness has raised concern in Japan about currency volatility and the broader impact on the economy.
If confirmed, the move would signal a rare moment of direct coordination between the United States and Japan in foreign-exchange markets. Such interventions are uncommon and typically draw attention because they can influence investor expectations about how far authorities are willing to go to steady a currency.
Markets are likely to focus on whether the reported support changes the yen’s recent trajectory and whether further action follows. For now, the reported intervention underscores the seriousness of the pressure facing Japan’s currency and the importance of the move for global foreign-exchange markets.
