The US Treasury stepped into the currency market to support the yen, Washington's first such action since 2011

The Financial Times reported that the US Treasury stepped into the currency market on Friday, 31 July 2026, to support the Japanese yen, marking Washington's first intervention alongside Tokyo in support of Japan's currency in more than a decade, with the yen languishing near 40-year lows. According to the report, which cited people familiar with the matter, the Federal Reserve Bank of New York conducted a sale of euros to buy yen on behalf of the Treasury through Goldman Sachs and Morgan Stanley. The report did not indicate any amount of yen purchased. The US Treasury's last direct support for the yen was in 2011, when Washington coordinated with fellow Group of Seven nations to stabilise markets after Japan's earthquake and tsunami.

Earlier the same day, the US Treasury had informed a number of banks that it might intervene in the yen market and that they should "stand ready for future action", a source familiar with the matter told Reuters. A Reuters photograph of US Treasury Secretary Scott Bessent's notepad during a Cabinet meeting at Camp David in Maryland showed he was contemplating purchases of $5 billion to $10 billion worth of Japanese yen. The notepad in the photo, taken over Bessent's shoulder during an on-the-record portion of the meeting, bears the underscored words "To Do" followed by "Buy Japanese Yen (JPY) $5-10 bil". The Treasury, the New York Fed and Morgan Stanley did not immediately respond to requests for comment, and Goldman Sachs declined to comment.

News of the potential intervention pushed the yen higher against the dollar. LSEG data showed the US dollar fell from about 158.9 yen to about 157.6 yen in late Friday trading, a drop of roughly 0.8 percent. Bank of Japan data released on Friday also indicated Tokyo may have sold as much as $58.97 billion to buy yen on Thursday, 30 July. The dollar index is among the variables affecting the world gold price, and through it Iran's gold and currency markets.