US Treasury intervenes to support yen after Japan steps in, FT reports

The US Treasury intervened in the foreign exchange market to support the yen, making outright purchases through Goldman Sachs and Morgan Stanley.

​The U.S. Treasury ‌intervened to ​support the yen on Friday through outright purchases, the Financial Times reported, joining ‌Japan in its efforts to boost the currency from near 40-year lows.

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 FT said, citing people familiar with the matter. Earlier on Friday, the U.S. Treasury 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.

News of ​the potential intervention by the Treasury helped push the yen ⁠higher against the dollar on Friday. Japan may have sold as much ⁠as $58.97 ​billion to buy yen on Thursday, central bank data indicated on Friday, signaling repeated efforts to stem the ⁠yen's weakness. The Treasury, New York Fed and Morgan Stanley could ⁠not immediately be ⁠reached for comment outside regular business hours. Goldman Sachs declined to comment.