US Treasury Secretary Bessent’s ‘to-do’ list reveals proposal for US to buy $5-10 billion Japanese yen; yen gains on reports of US and Japan intervention

U.S. Treasury Secretary Scott Bessent's recent disclosure of a 'to-do' list during a cabinet meeting has sparked discussions about potential U.S. intervention in the currency market. The list indicated plans to purchase $5 billion to $10 billion in Japanese yen, a move that aligns with ongoing efforts to stabilize the yen's value.²⁵

On Friday, Japanese authorities intervened in the currency market, buying yen and selling dollars, which resulted in a significant strengthening of the yen. Reports indicate that the yen gained more than 1% against both the dollar and the euro, with the dollar dropping from approximately 158.9 yen to 157.6 yen within an hour, marking a 0.8% decline.¹⁴

The U.S. Treasury has not intervened in the yen market since 2011, when it participated in coordinated actions with G7 countries following a devastating earthquake and tsunami in Japan. However, the recent depreciation of the yen, which reached its weakest level since 1986, has prompted renewed interest in intervention. Earlier on Friday, the Treasury had notified banks of a potential intervention, indicating a proactive approach to currency stabilization.

Bessent's notepad, visible in a photograph taken during the cabinet meeting, showed the underscored words "To Do" followed by "Buy Japanese Yen (JPY) $5-10 bil." This revelation has raised questions about the U.S. Treasury's strategy moving forward, especially in light of rising oil prices and other economic factors affecting the yen's value.