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

The US Treasury has told banks that further intervention in the Japanese yen is possible today, according to Nikkei Asia. The yen surged following the report by Nikkei Asia, highlighting market sensitivity to signals of official support as traders quickly recalibrated risk. The guidance lands amid heightened volatility in dollar-yen as policy divergence and wide interest-rate gaps keep pressure on Japan’s currency.

Nikkei Asia reports Treasury officials notified major banks that more yen-focused action could occur, sending traders scrambling to adjust positions. Previous yen operations are typically executed by Japan’s Ministry of Finance with the Bank of Japan acting as agent, and any US messaging may shape expectations. Markets now await confirmation or denial from Washington and Tokyo, shifts in dollar-yen, US Treasury yields, and any coordinated statements from G7 counterparts. [Developing. This article will be updated.]