The U.S. Treasury reportedly intervened to buy yen on Friday, marking its first direct support for the Japanese currency in over a decade amid its struggle near 40-year lows. This move, executed by the New York Fed through Goldman Sachs and Morgan Stanley, followed Japan’s own efforts to stem the yen’s weakness. The intervention, hinted at by a Reuters photo of Treasury Secretary Scott Bessent’s notepad detailing a plan to “Buy Japanese Yen $5-10 bil,” helped the yen rebound against the dollar.
In a significant move to bolster the embattled Japanese currency, the U.S. Treasury reportedly intervened on Friday by purchasing yen, marking Washington's first direct yen-buying intervention alongside Tokyo in over a decade. This action comes as the yen has struggled near historic 40-year lows, prompting concerns among global financial policymakers.
Sources familiar with the matter, cited by the Financial Times, indicate that the Federal Reserve Bank of New York executed the yen purchases on behalf of the Treasury, selling euros through major financial institutions like Goldman Sachs and Morgan Stanley. While the FT report did not specify the amounts involved, it underscores a coordinated effort to stabilize currency markets.
Earlier on Friday, a Reuters source revealed that the Treasury had alerted several banks about potential yen market intervention, advising them to "stand ready for future action." Adding to the speculation, a Reuters photograph captured U.S. Treasury Secretary Scott Bessent's notepad during a Camp David cabinet meeting, visibly detailing a "To Do" item: "Buy Japanese Yen (JPY) $5-10 bil."
A notepad in front of U.S. Secretary of the Treasury Scott Bessent reads "To Do Buy Japanese Yen $5-10 bil" as he participates in a cabinet meeting at Camp David, Maryland, U.S., July 31, 2026. The note, photographed at 11:33 EDT, came after Reuters earlier reported the Treasury had put banks on alert for a possible U.S. intervention in the market for Japan's currency. (Daniel Heuer | Reuters)
The Treasury, New York Fed, and Morgan Stanley did not immediately respond to requests for comment outside regular business hours regarding the FT report or the notepad photo, while Goldman Sachs declined to comment. However, reports from Kyodo News on Saturday suggest that Japan and the U.S. are poised to announce a joint policy as early as next week to tackle the yen's sustained weakness. This announcement aims to deter speculative trading that has pressured the Japanese currency, thereby promoting market stability.
The last direct U.S. intervention to support the yen occurred in 2011, when it coordinated with G7 nations following Japan's devastating earthquake and tsunami. This latest news of potential U.S. Treasury involvement provided a significant boost to the yen, which saw a notable appreciation in late afternoon trading. The dollar retreated to approximately 157.6 yen from around 158.9 yen, according to LSEG data, after having recently surged to nearly 164 yen—its highest level since 1986.
Concurrently, central bank data indicated Japan might have sold as much as $58.97 billion to purchase yen on Thursday, signaling its ongoing efforts. The Nikkei newspaper further reported that Tokyo intervened again during New York trading hours on Friday. Japan's Finance Ministry, though unreachable for comment outside working hours, reassured markets via X that monetary authorities possess "a broad range of tools to address market liquidity needs," including potential access to the Federal Reserve's standing Foreign and International Monetary Authorities (FIMA) Repo Facility. This facility enables Japan to secure dollar liquidity without selling U.S. Treasuries, easing funding for intervention.
