- A photograph of Treasury Secretary Scott Bessent's notepad during a cabinet meeting at Camp David revealed a plan reading 'To Do Buy Japanese Yen (JPY) $5-10 bil.'
- Prior to the photograph, the US Treasury had informed several banks that it might intervene in the Japanese yen market and advised them to stand ready.
- The Japanese yen saw significant fluctuations, strengthening against the U.S. dollar following Tokyo's unilateral currency intervention earlier in the day.
- Additionally, the Bank of Japan held its short-term interest rate steady at 1% in a hawkish hold, signaling potential future interest rate hikes starting as early as September.
Quotes
“We'd characterize that as a hawkish hold, in the sense that they're very much open to tightening rates, I think, at the next meeting in September”