U.S. Treasury joins Japan to support yen from near 40-year lows

Secretary Bessent called the currency "very undervalued," and coordinated purchases lifted the yen to its strongest level since May.

Summary

The U.S. Treasury joined Japan in intervening in currency markets to support the yen after it had traded near 40-year lows. Secretary Bessent described the yen as "very undervalued," and coordinated purchases helped push the Japanese currency to its strongest level since May. The move signals rare cross-border action in foreign-exchange markets, where official buying can be used to counter sharp weakness and stabilize trading conditions.

Terms & Concepts
  • intervening in currency markets: Official buying or selling to influence exchange rates.
  • yen: Japan's national currency.
  • foreign-exchange markets: Markets where currencies are traded globally.