The United States sold euros in foreign exchange markets to support the Japanese yen, according to Italian newspaper la Repubblica. The European Central Bank (ECB) was not informed of the move in advance and learned about it only afterward, the report says.
The sales were reportedly carried out as part of a strategy to stabilize the yen, which has been under pressure. la Repubblica describes the action as a new challenge to Europe, noting that Frankfurt was left in the dark about the intervention.
The report is echoed by other Italian financial outlets. Borsa Italiana says the US sold euros without notifying the ECB, leaving Frankfurt surprised. Yahoo Finance Italy similarly reports that Europe discovered the US had sold euros to rescue the yen only after the fact.
The move comes amid ongoing volatility in currency markets. Milano Finanza notes that the strategy to stabilize the yen, attributed to US Treasury Secretary Scott Bessent, raises questions about whether it will work and what it means for investors. Meanwhile, La Stampa reports that the yen is attempting a difficult recovery while gold tries to regain its shine.
The reports do not specify the size of the euro sales or the exact timeline of the intervention. They also do not indicate whether the US coordinated with Japan or other central banks beyond the ECB's apparent lack of notice.
The episode highlights friction between Washington and European monetary authorities over currency policy. The ECB has not publicly commented on the reports as of the time of publication.
What to watch next: whether the ECB or other European officials respond publicly to the reported intervention, and whether the yen's recovery holds in the coming sessions.
