Japanese yen fluctuates, US Department of the Treasury considers currency intervention.

US Treasury Secretary Scott Besant expressed concerns this week that the market turmoil in Japan could spread to the United States, prompting the Treasury Department to take preliminary measures of foreign exchange intervention on Friday. Two sources familiar with the matter revealed that representatives from the New York Federal Reserve Bank on behalf of the Treasury Department inquired about the cost of exchanging the yen for the US dollar at several banks. This unusual move led to a significant rebound in the yen exchange rate. Exchange rate movements can affect bond yields, and Besant pointed out this week that the rise in Japanese government bond yields is one of the reasons for the increase in the borrowing costs of the US government. The inquiries conducted by the New York Fed on Friday regarding exchange rates sent a signal to traders: the Treasury Department may be planning a large-scale purchase of yen. Although the Treasury Department ultimately did not intervene, the anticipation of potential large-scale purchases still drove the yen to US dollar exchange rate up by 1.6%, marking the largest single-day increase in nearly six months.