The exposed to-do list
During a cabinet meeting held at Camp David on Friday, US Treasury Secretary Scott Bessent inadvertently left a notepad with a scribbled to-do list visible to Reuters photographers. The note, which included the plan to buy $5 billion to $10 billion in Japanese yen, was on display during a portion of the meeting accessible to the press. Bessent's name card was clearly visible on the table above the notepad, confirming his presence. The photograph was captured at 11:33 am local time, and the notepad remained in view nearly 30 minutes later as Bessent gave a speech praising the president. A spokesperson for the Treasury Department had not yet responded to Reuters' inquiry regarding the notepad's content or whether the department took any action to support the yen on Friday.
Yen market under pressure
The yen had weakened to its lowest level since 1986 in the days before the meeting, a development attributed to a variety of factors including a spike in oil prices, as reported by Bloomberg News. On the same day the note was seen, Japanese authorities had already taken steps to stabilize the yen. These efforts led to a significant recovery in the yen's early trading session. Later in the day, around 5 pm, the value of the US dollar dropped by 0.8%, reaching 157.6 yen, according to data from LSEG. This decline marked a clear shift in the yen's performance following earlier volatility.
Historical context of intervention
The US Treasury's involvement in the yen market has been rare in recent years. The last recorded intervention occurred in 2011 when the G7 nations jointly acted to support Japan's currency after a devastating earthquake and tsunami. This coordinated move briefly bolstered the yen. On Friday, the yen experienced another notable strengthening in the afternoon, and the New York Federal Reserve executed a transaction by selling euros and purchasing yen on behalf of the US Treasury, as reported by the Financial Times. Reuters also noted earlier in the day that the Treasury had informed several banks of its potential market intervention, according to an unnamed source.