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The United States carried out a rare intervention to support the Japanese Yen, with the U.S. Treasury purchasing yen valued between $5 billion and $10 billion through transactions coordinated with the Federal Reserve Bank of New York. This came after the Japanese currency declined to its lowest levels in about four decades, reaching approximately 157.6 yen per dollar before the close of U.S. trading. This move followed previous dollar declines, which saw the currency rise to around 164 yen—its highest level since 1986—adding pressure on Japan to take measures to support its currency. This pressure was further compounded by Japanese Central Bank data indicating that Tokyo may have sold approximately $59 billion worth of dollars in recent days to buy yen. Japan has indicated it possesses extensive tools to address the currency's decline, including the use of international liquidity mechanisms that allow it to obtain dollars without directly selling U.S. bonds.
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