US Treasury Secretary Bessent Comments on Yen Stability, Signals Reduced Intervention Odds
| Pair | Now | Since publish |
|---|---|---|
| USDJPY | — | — |
- Bessent: JPY moves not disorderly, reducing intervention odds.
- Bessent urges Japan to raise interest rates, seeks stronger Yen.
- US backs Japan’s decisive steps to fix yen undervaluation.
US Treasury Secretary Scott Bessent stated that recent movements in the Japanese Yen (JPY) are “pretty well contained” and not “disorderly.” This assessment suggests a reduced likelihood of a repeat of the rare joint US-Japan intervention that occurred last month when the currency reached 40-year lows. Bessent also indicated that the pace of Japanese monetary tightening remains solely with the Bank of Japan (BOJ), deferring to Governor Ueda’s judgment rather than advocating for consecutive rate hikes. He further noted that Japan has likely reached the end of its Abenomics reflation program. Bessent previously defended past yen support, citing concerns that extreme yen volatility could ultimately contribute to higher US interest rates.
US Treasury Secretary Scott Bessent stated his expectation that Bank of Japan Governor Kazuo Ueda will “do the right thing” on monetary policy. Bessent further reiterated his belief that the Bank of Japan and the Japanese government will take actions that will lead to a stronger Yen.
US Treasury Secretary Scott Bessent reportedly told Japanese Finance Minister Satsuki Katayama and Bank of Japan Governor Kazuo Ueda that Japan’s next step should be to raise interest rates, according to an NHK report citing a US official.
US Treasury Secretary Scott Bessent explicitly stated he does not view recent yen moves as disorderly, reinforcing the reduced likelihood of intervention. Speaking at the G20 summit, where he met with Japanese Finance Minister Satsuki Katayama and Bank of Japan Governor Kazuo Ueda, Bessent also affirmed his belief that Japan is taking the right steps for its economy.
US Treasury Secretary Scott Bessent, following his meeting with Bank of Japan Governor Kazuo Ueda, emphasized the importance of sound formulation and communication of monetary policy to anchor inflation expectations. Bessent also expressed strong support for Japan’s decisive market and monetary steps to address the undervaluation of the Japanese Yen, further suggesting his backing for actions to bolster the yen.