The US Treasury Department just did something it hasn’t done in more than 20 years. It told banks to get ready for a potential intervention in the yen market.
On July 31, the Treasury, acting through the Federal Reserve Bank of New York, notified several banks that it may take decisive action to stabilize the Japanese yen.
What the Treasury actually said
The warning came roughly a week after the Treasury’s semi-annual currency report, dated July 23-24, which flagged “excessive” volatility in the yen as undesirable. That same report recommended the Bank of Japan normalize its monetary policies, essentially advocating for BOJ rate hikes to close the yawning interest-rate gap between the US and Japan.
The yen has been hovering around 160 per dollar, near multi-decade lows. At one point in mid-2026, it touched 162.83, a level that prompted Japanese authorities to step in with what analysts described as record-scale dollar buying earlier this year.
