U.S. Treasury intervenes to support yen after Japan steps in; joint policy possible next week

Japan and the United States may unveil a policy as early as next week to address the yen's weakness, Kyodo News reported Saturday, citing informed sources. (CNBC) This follows a coordinated intervention: US and Japanese authorities extended efforts to shore up the yen on Friday, with the currency strengthening more than 1% against both the dollar and the euro, (Bloomberg) and the Financial Times reported the Federal Reserve Bank of New York sold euros to buy yen on behalf of the US Treasury. (Bloomberg) The intervention was executed via banks like Goldman Sachs and Morgan Stanley, and followed Japan's heavy spending to defend the yen amid sharp declines that had pushed USD/JPY from near 164 to 157. (X) Analysts say the move aims to curb volatility from a potential yen carry-trade unwind. (X) This marks America's first yen intervention since 1998. (X)