The United States Treasury is reportedly considering buying Japanese yen, a move that would mark a significant intervention in support of Japan's currency. A note from Treasury Secretary Bessent suggested buying $5-10 billion worth of yen, according to reports. The dollar slipped against the yen as news of the potential move emerged.
Japanese authorities had already intervened earlier to support their currency. The reported US consideration follows those efforts and signals what appears to be the tightest coordination between the two countries in decades. That coordination has raised the stakes for traders betting against the yen, as a joint US-Japan intervention would be far harder to fight than action by Tokyo alone.
The reports indicate the move is still under consideration, but the mere suggestion of US involvement in currency markets—something Washington rarely does—has already shifted market sentiment.