U.S. officials carried out foreign-exchange rate checks in January intended to underpin the Japanese yen and remained willing to conduct coordinated market intervention if Japan sought assistance, the Nikkei reported, citing unnamed government sources.
According to the report, the New York Federal Reserve executed the rate checks as an agent for the U.S. Treasury Department. The action was taken without a direct request coming from Japan’s Ministry of Finance, the account said.
The initiative was led by U.S. Treasury Secretary Scott Bessent, the Nikkei said, driven by concern that political uncertainty tied to Japan’s upcoming general election could unsettle domestic markets and create spillover effects across international financial markets.
U.S. authorities treated the rate checks as a preliminary measure ahead of potential yen-buying intervention. The report added that officials considered stepping into the exchange-rate market to support the yen if Tokyo formally requested such assistance, citing a senior official close to Secretary Bessent.
The description in the report framed the checks as part of a graduated approach - initial market inquiries by the New York Fed on behalf of the Treasury, followed by the option of joint intervention at Japan’s behest. The Nikkei attributed these details to unnamed government sources and to a senior official familiar with the Treasury secretary’s thinking.
Details in the report did not indicate that Japan’s Ministry of Finance had requested direct intervention before the New York Fed initiated the checks. Nor did the account provide additional specifics on timing beyond the month of January, the precise mechanics of the checks, or any subsequent actions taken by either government.
The report underscores the U.S. government’s readiness to coordinate with a key ally on exchange-rate stability when concerns arise, and it highlights how pre-election political dynamics in one country can prompt foreign authorities to monitor and, if necessary, prepare to act in currency markets.