US Treasury tells banks further yen intervention possible as yen surges: Nikkei Asia

The US Treasury has told banks that further yen intervention is possible today, and the yen surged on the news, Nikkei Asia reports. The signal underscores concern over disorderly currency moves after recent volatility. Japan has stepped into markets during past bouts of yen weakness, with US acquiescence often seen as vital.

Nikkei Asia says the Treasury conveyed to dealer banks that another round of action could come if price moves turn unstable, prompting fast yen gains against the dollar in Asia hours. The development rippled through currency and rates markets as traders gauged the risk of coordinated intervention and policy signals ahead of key data. Watch for official comments from the US Treasury and Japan’s Ministry of Finance, plus any abrupt USD/JPY swings that hint at fresh action. [Developing. This article will be updated.]