Bessent Cites Global Market Risks Behind US Yen Intervention

Treasury Secretary Scott Bessent has defended the US decision to support the yen in late July, citing risks to global markets and higher borrowing costs for Americans.

In a letter responding to Democratic Senator Elizabeth Warren's inquiry, Bessent stated that extreme volatility in the Japanese currency could lead to forced unwinds of US Treasuries held by Japan, destabilizing global markets and increasing borrowing costs for American families and businesses.

The operation marked the first US intervention to buy yen since 1998. According to Japan, it spent a record $96.4 billion in the past month to support the currency, which has given back some of its gains from the intervention.