U.S. and Japan Intervene in Yen Market for First Time in Nearly 30 Years

Huo Xing Finance reports that on August 1, U.S. Treasury Secretary Bentsen’s notebook, during a Trump administration cabinet meeting at Camp David on Friday local time, was exposed, showing a to-do item that read: “Buy JPY $5–10 billion.” The photo was taken during the media-accessible portion of the meeting at 11:33 a.m. Eastern Time (11:33 p.m. Beijing Time). Bentsen’s name tag was clearly visible directly above the notebook. The U.S. Treasury spokesperson did not respond to requests for comment regarding the notebook’s contents or whether any intervention took place on Friday. According to the Financial Times of the UK, the U.S. Treasury intervened in the yen exchange rate on Friday local time, marking the first coordinated direct purchase operation to support the yen between the U.S. and Japan in nearly 30 years. Three informed sources revealed that the New York Fed, acting on behalf of the Treasury, executed an unusual operation—selling euros to buy yen—with two of the sources indicating the trades were executed through Goldman Sachs and Morgan Stanley. Prior to the action, the U.S. Treasury had informed multiple Wall Street banks that it was considering intervening in the yen market. The last time the U.S. Treasury intervened to support the yen was in 2011, though at that time the action involved selling yen.