US May Purchase $5–10 Billion in Yen, Bessent’s Note Signals Currency Support Plan
A note seen during a White House meeting suggests Washington may purchase up to $10 billion worth of yen, adding to speculation of coordinated action with Japan to stabilise the currency.
Washington, Aug 1: Fresh indications have emerged that the United States could be preparing to assist Japan in stabilising its currency, after a handwritten note belonging to US Treasury Secretary Scott Bessent hinted at plans to purchase billions of dollars worth of Japanese yen.
The development surfaced during a Cabinet meeting at Camp David, where a Reuters photograph captured Bessent’s notepad displaying an underlined “To Do” list. The note included a single instruction: “Buy Japanese Yen (JPY) $5-10 bil.,” sparking market speculation that Washington may be considering direct action in foreign exchange markets.
The image appeared shortly after reports suggested the US Treasury had alerted several major financial institutions to remain prepared for potential intervention in the yen market. Although American authorities have not officially confirmed any such move, the sequence of events fuelled expectations of coordinated support for Japan’s currency.
The Japanese yen strengthened sharply during Friday’s trading session following intervention by Tokyo. Market data showed the US dollar falling from around 158.9 yen to nearly 157.6 yen within an hour during US trading, reflecting renewed buying interest in the Japanese currency.
Reports also indicated that Washington may have joined Japan in supporting the yen. According to the Financial Times, the US Treasury reportedly carried out foreign exchange operations through the Federal Reserve Bank of New York, using major investment banks to purchase yen. The report cited sources familiar with the matter but did not specify the size of the transactions.
If confirmed, the move would represent the first direct US participation in yen support operations since 2011, when the United States joined fellow G7 nations in coordinated intervention following Japan’s devastating earthquake and tsunami.
Meanwhile, Japan has significantly increased its own efforts to defend the yen against persistent weakness. Central bank estimates suggest authorities may have spent nearly $59 billion in market operations on Thursday alone to support the currency.
Japanese policymakers have intensified intervention measures in recent months as the yen repeatedly approached multi-decade lows against the US dollar. The latest actions followed a series of official warnings that Tokyo stood ready to intervene whenever necessary to curb excessive volatility.
The currency had already staged a strong recovery in recent weeks, rising more than 3% after touching levels close to a 40-year low. Earlier intervention rounds in April and May were estimated to have exceeded $70 billion, highlighting Japan’s determination to stabilise its financial markets.
Financial markets will now closely monitor whether Washington formally confirms any participation in currency operations, as coordinated intervention by the United States and Japan could have significant implications for global foreign exchange markets and investor sentiment.
