Overview
- Bank of Japan data and market reports show Tokyo bought large amounts of yen in New York on Thursday, with BOJ figures suggesting up to $58.97 billion was used to buy yen.
- The United States routed its support through the New York Fed by selling euros and buying yen, with Treasury Secretary Scott Bessent photographed with a note to buy $5–10 billion and major banks said to have executed orders.
- Reports put total U.S.-linked purchases at about ¥8.45 trillion, and the combined operations pushed the dollar from near ¥164 at its weekly peak back toward roughly ¥157.
- The BOJ recently kept its policy rate around 1% while signaling a possible hike, so officials combined market intervention with hints of tighter policy to narrow the yield gap that helped drive the yen lower.
- South Korea also intervened to support the won, and markets are watching for official confirmations, details of any ongoing operations, and whether the actions will durably curb import-driven inflation and pressure on bond markets.