according to a source familiar with the matter.

The Treasury Department communicated this message to major banks through the Federal Reserve Bank of New York, which acts as the agency's agent in financial markets. According to sources familiar with the matter, several banks received instructions to prepare transactions to exchange Japanese yen for euros. The US holds a portion of its foreign exchange reserves in euros.

The notification came amid investor expectations of possible coordinated international action to strengthen the Japanese yen against the dollar, with the involvement of Japanese authorities.

In recent trading, the yen strengthened above 160 per dollar, compared to around 164 per dollar on Thursday morning. Foreign exchange market participants generally attribute the yen's strengthening to purchases by the Japanese authorities and speculation about possible US intervention.

Japanese Finance Minister Satsuki Katayama declined to comment on the country's actions in the foreign exchange market on Friday. She noted that the global community recognizes the scale of the yen's weakening and called significant the fact that US Treasury Secretary Scott Bessent warned about the Japanese currency's undervaluation.

James Malcolm, an analyst at London-based JB Drax Honoré, stated that the US and Japanese authorities risk a failed coordinated intervention. He pointed to the projected scale of Japanese intervention—estimated at up to $70 billion—compared to the relatively modest yen appreciation that has been achieved.