U.S. authorities initiated 'rate checks' in January to support the yen, signaling a readiness for joint intervention with Japan if requested. The New York Federal Reserve led these actions, on behalf of the U.S. Treasury Department.
U.S. Treasury Secretary Scott Bessent spearheaded these checks, driven by concerns that political uncertainty surrounding Japan's general election could destabilize its markets and impact global finance. The actions were taken proactively, without an immediate request from Japan's Ministry of Finance.
These preliminary steps toward potential yen-buying intervention underscore U.S. commitment to exchange-rate market stability. A senior official close to Bessent indicated a willingness to intervene if Tokyo requested such measures.