US and Japan Launch Coordinated Yen Intervention, First in 30 Years

A leaked document has uncovered an unprecedented monetary cooperation between two economic giants. During a cabinet meeting at Camp David, Treasury Secretary's notebook was photographed by Reuters, revealing a to-do item that read "Buy $5-10B in yen."

The Accidental Memo Disclosure

The photo was taken during a media access period at 11:33 AM Eastern Time. Secretary's nameplate happened to be positioned above the notebook, allowing clear visibility of what should have been confidential plans. The Treasury Department spokesperson declined to comment on the notebook contents or whether intervention had occurred.

Historic Joint Market Operation

According to Financial Times reports, the Treasury Department did take action that day. The New York Federal Reserve executed an unusual operation on behalf of the Treasury—selling euros to purchase yen. Three informed sources indicated the transaction was completed through major Wall Street institutions.

This operation marks the first coordinated direct purchase by the US and Japan to support the yen in nearly three decades. The Treasury Department had notified several Wall Street banks beforehand about considering currency intervention.

Execution Details of the Intervention

  • Operation conducted by NY Fed on Treasury's behalf
  • Strategy involved selling euros to buy yen
  • Multiple Wall Street banks facilitated the transaction
  • Banks were pre-warned about potential intervention

The context of this intervention is particularly noteworthy. The last US intervention in yen markets dates back to 2011, but that operation moved in the opposite direction—selling yen rather than buying. This joint action represents a significant shift in the US stance toward yen valuation.

Currency markets responded quickly to the intervention. While the exact transaction size hasn't been officially confirmed, the $5-10 billion plan indicates serious commitment from both nations. The coordinated move sends a clear market signal that both economies are prepared to jointly address excessive currency volatility.