Financial Times: US Treasury warns banks it may intervene in yen

‘While not an official intervention, the New York Federal Reserve on Friday morning called US banks to ask about rates on the yen against the euro, according to two sources familiar with the calls. The calls were a way to signal “to markets that the US intends to prop up the yen rather than depreciate the dollar”, said Karl Schamotta, chief market strategist at Corpay Cross-Border Solutions. “That is not necessarily how it will play out in practice: US euro reserves are too small to have a major impact, so dollar selling may be needed as well.”’

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