Bessent Defends Modest Cost of US-Japan Joint Yen Intervention
US Treasury Secretary Scott Bessent defended the joint currency intervention between the US and Japan to prop up the yen, saying it was done at a 'modest' cost. The intervention aimed to strengthen the Japanese yen against the US dollar.
Bessent testified before a House Financial Services Committee hearing that the US participated in the intervention to signal its support for Japan's policies, including Tokyo's desire for a stronger yen. He argued that this would be beneficial for US exporters and interest rates.
A stronger yen means that the Japanese government does not have to sell US assets to defend its currency, Bessent explained. This would also benefit American exporters as a stronger yen makes their products more competitive in the global market.