NewsMV
The yen is in focus after the US Treasury carried out what is being characterized as a historic market intervention. The New York Fed sold euros to buy yen.
The move came after speculation circulated that Tokyo had already stepped in to support Japan's currency. The mechanics The New York Fed acted as the operational arm, selling euros to fund yen purchases.
That routes the trade through euro-denominated reserves rather than direct dollar sales.
In FX markets, the choice of funding currency is part of the signal, and the tape is now working from the confirmed mechanism alongside the Treasury's own characterization of the action as historic.
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