Forex
Bessent Backs Yen-Stabilization, Warns of Currency Spillover
US Treasury Secretary Scott Bessent expressed support for Japan's efforts to stabilize its currency, the yen. He warned that further weakness in the yen could have a ripple effect on other countries' currencies.
Bessent stated that there are clear standards and a framework needed for intervention in the yen market, and that Japan is making serious efforts to prevent the yen's decline.
He also emphasized that the Bank of Japan will take necessary steps if the yen weakens further. Bessent believes that other currencies could come under pressure as well.
The US Treasury Secretary also commented on China's yuan, stating that many people view it as undervalued.