Core Insights - The Federal Reserve has conducted a "rate check" on the dollar-yen exchange rate, indicating potential active intervention in currency markets [1] - The U.S. Treasury has requested the Fed to quote a large yen purchase to depreciate the dollar and strengthen the yen [2] - The dollar has recently appreciated against the yen, nearing the ¥160 level, but has seen significant fluctuations [4] Group 1: Federal Reserve Actions - The Fed's January meeting minutes reveal that private market participants expected the dollar to weaken, but stronger U.S. economic performance has tempered those expectations [2] - The dollar depreciated significantly following reports of the Fed's "rate checks" on the dollar-yen exchange rate [3] Group 2: White House and Currency Strategy - The "rate check" suggests the White House's preference for a weaker dollar to enhance the affordability of U.S. goods for foreign buyers, thereby supporting exports [5] - Analysts view this move as an indication of a more proactive approach by the White House in foreign exchange matters, aiming to prevent the USD/JPY from exceeding 160 [6] Group 3: Market Reactions - The U.S. Dollar Index (DXY) has fallen 8.61% over the past year, yet President Trump has expressed indifference towards the dollar's decline, emphasizing his stance against currency weakening by other nations [7]

By Rocky Swift TOKYO, Jan 30 (Reuters) - Japan refrained from intervening in currency markets through last week, official data showed on Friday, confirming that the government's efforts ​to defend the yen have been limited to verbal warnings. Ministry of Finance data showed ‌Japan spent no funds on intervention from December 29 through January 28. On January 23 after a decision by ‌the Bank of Japan, the yen mysteriously jumped 1.7% after trading near an 18-month low against the dollar. The yen rallie ...