US Treasury: We understand Japan's intervention is aimed at reducing yen volatility

A spokesperson for the US Treasury said on Tuesday that they acknowledge the Bank of Japan's intervention in the foreign exchange market.

"The Bank of Japan today intervened in the foreign exchange market. We understand Japan’s action, which it states aims to reduce recent heightened volatility of the yen," the spokesperson stated, as reported by Reuters.

Market reaction

The USD/JPY pair showed no immediate reaction to this statement and it was last seen losing more than 1% on the day at around 142.00.