Fed Admits Conducting ‘Extremely Rare’ Dollar-Yen ‘Rate Check’ On White House Request

Namrata Sen

Mon, February 23, 2026 at 8:00 PM GMT+9 3 min read

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The Federal Reserve on Wednesday acknowledged performing a “rate check” on the dollar-yen exchange rate for the White House, hinting at possible active intervention in the currency markets.

The Fed’s January meeting minutes show that private market participants had expected the dollar to continue weakening this year. However, stronger-than-anticipated performance in the U.S. economy has cooled those projections. Meanwhile, the dollar has been steadily appreciating against the yen, moving closer to the ¥160 level

Subsequently, the U.S. Treasury asked the Fed’s trading desk to quote a large yen purchase, a strategy that would depreciate the dollar and boost the Japanese currency.

“The dollar had depreciated markedly after reports that the Desk had made requests for indicative quotes, known as ‘rate checks,’ on the dollar–yen exchange rate,” stated the minutes.

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On January 23, the dollar was trading at ¥158.50 but slid sharply to ¥152.45 by January 27, marking an unusually steep move for major global currencies.

The manager clarified that the Desk sought the quotes “solely” on behalf of the U.S. Treasury, acting in its capacity as the New York Fed’s fiscal agent.

‘Extremely Rare’ Move By White House

The “rate check” move suggests the White House prefers a weaker dollar to make U.S. goods and services more affordable for foreign buyers, thereby supporting exports and attracting more foreign investment into the country.

ING analyst **Chris Turner **voiced surprise at this development, interpreting it as a sign of a more proactive White House in foreign exchange matters. He told Fortune that the move was “extremely rare in foreign exchange markets” and intended for maximum impact, reflecting a mutual intent from Washington and Tokyo to prevent USD/JPY from maintaining a move through 160.

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Dollar Slides, Trump Unfazed

The U.S. Dollar Index (DXY) fell 8.61% over the past year, but President Donald Trump expressed indifference about the greenback’s decline. “No, the dollar is doing great,” the president said in January. Trump said he had strongly pushed back against China and Japan over what he described as their efforts to weaken their currencies, arguing that it makes it difficult for others to compete.

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A recent survey by Bank of America revealed that global investors were more bearish on the U.S. dollar than at any point in at least 14 years. The survey revealed that USD positioning had fallen to the most underweight level since January 2012. However, Claudio Irigoyen of Bank of America said the dollar could weaken further but faces clear downside limits. He added that despite ongoing uncertainty and policy shifts, the U.S. economy continues to outperform, showing no signs of faltering.

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This article Fed Admits Conducting ‘Extremely Rare’ Dollar-Yen ‘Rate Check’ On White House Request originally appeared on Benzinga.com

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