Unprecedented Market Action: Friday Saw Dollar Sold for Yen in Joint Move, Says Report

Deep News08-01 07:30

In an unusual coordinated effort, the U.S. Treasury is reported to have intervened in the foreign exchange market on Friday, directly buying Japanese yen for the first time in nearly three decades to bolster Tokyo's currency.

According to a report by the Financial Times citing three unnamed sources, the New York Federal Reserve Bank executed the intervention on behalf of the U.S. Treasury. The operation involved selling euros to purchase yen, a rare move for the U.S. central bank.

Two of the sources informed the newspaper that the transactions were carried out through investment banks Goldman Sachs and Morgan Stanley. Neither the New York Fed nor Goldman Sachs offered any comment on the matter. The U.S. Treasury and Morgan Stanley have not yet responded to requests for comment.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment