Bessent Defends Japan-US Currency Intervention as Boost for US Exports
US Treasury Secretary Scott Bessent defended Washington's coordinated currency intervention with Japan in late July, saying it was beneficial for American exporters. The intervention helped shore up the Japanese yen, which had weakened to a 40-year low near 164 against the US dollar on July 31.
Bessent testified before the House Financial Services Committee that the US put only a 'nominal amount' into the historic intervention and that supporting Japan's currency aligned with Washington's objective of preventing US interest rates from rising. A stronger yen, he argued, is better for American exports.
The Secretary also expressed concern about the potential impact on US yields and borrowing costs, saying that a relentless sell-off of the yen could put more upward pressure on US yields.