US Treasury intervenes to support yen after Japan steps in, FT reports

The U.S. Treasury Department intervened in currency markets to support the Japanese yen, the Financial Times reported, citing people familiar with the matter. This action followed Japan's own intervention to prop up its currency.

Japan had previously entered the market to buy yen, marking its first such intervention in over two decades. This move was a response to the yen's sharp decline against the U.S. dollar, which had reached multi-decade lows. The depreciation was largely driven by the widening interest rate gap between Japan and the United States, as the Federal Reserve aggressively raised rates while the Bank of Japan maintained its ultra-loose monetary policy.

The coordinated or at least acknowledged intervention by the U.S. signals a shared concern over the yen's rapid slide and its potential economic repercussions. While the exact scale and impact of the U.S. intervention remain unclear, its involvement underscores the international implications of the yen's weakness and the desire to stabilize currency markets.