A photo published by Reuters has revealed a note with a to-do list for US Treasury Secretary Scott Bessent, which includes buying $5 billion to $10 billion worth of Japanese yen.
The note, photographed during a US cabinet meeting at Camp David, has fueled speculation that the United States could intervene in the foreign exchange market to support the Japanese currency, which has been under heavy pressure against the US dollar.
The potential move comes at a time when Japanese authorities have been trying to curb the weakening yen.
Reuters reported that the US Treasury Department had notified several banks of the possibility of intervention in the foreign exchange market.
If implemented, this would be a significant U.S. intervention to strengthen the yen. The United States has not intervened directly to support the Japanese currency since 2011, when it acted in coordination with G7 countries after the natural disaster in Japan.
Bessent has previously stated that exchange rate stability is important and that the Japanese yen is undervalued, while Washington and Tokyo have increased cooperation to manage currency fluctuations.
Financial markets are closely monitoring the situation, as a coordinated US-Japan intervention could have an impact on the US dollar, the yen and global currency markets. /Telegraph/
