Published by Global Banking & Finance Review®
Posted on January 23, 2026
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleThe NY Fed's dollar/yen rate checks suggest possible intervention, causing a significant drop in the dollar against the yen.
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 23 (Reuters) - The New York Federal Reserve conducted rate checks on the dollar/yen pair around midday on Friday, a source familiar with the matter told Reuters.
Analysts say the move may have triggered a sharp drop in the greenback and could signal that U.S. and Japanese monetary authorities may be preparing to act after weeks of sustained dollar strength against the yen.
The dollar slid from around 157.50 yen at midday to a four-week low of 155.66 in the afternoon. It was last down 1.6% at 155.85 yen.
Acting as fiscal agent for the U.S. Treasury, the NY Fed carried out the rate checks, the source said.
The U.S. Treasury did not respond to Reuters’ requests for comment.
A rate check, in which officials ask dealers what price they would get if they entered the market, is something monetary authorities can use to signal their readiness to do so.
Traders have been wary of intervention by Japanese authorities as the yen has approached 160 per dollar.
Whether actual intervention took place might be inferred from data the Bank of Japan is set to release on Monday at 1800 JST (0900 GMT).
Analysts said U.S. monetary authorities stepping into what began as a Japanese affair is not typical, but it is not without precedent.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Chris Reese and Lisa Shumaker)
Foreign exchange, or forex, is the global market for trading national currencies against one another. It is the largest financial market in the world, where currencies are bought and sold.
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Currency intervention is an action taken by a central bank to stabilize or increase the value of its currency by buying or selling its own currency in the foreign exchange market.
Currency markets, also known as forex markets, are platforms where currencies are traded. They facilitate the exchange of one currency for another and are crucial for international trade.
The Federal Reserve, often referred to as the Fed, is the central bank of the United States responsible for implementing monetary policy, regulating banks, maintaining financial stability, and providing financial services.
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