Bessent Defends US-Japan Currency Intervention, Claims Minimal Cost

US Treasury Secretary Scott Bessent testified at the House Financial Services Committee on Tuesday, defending the coordinated intervention to support Japan's currency. He stated that the US deployed only a nominal amount in the operation and emphasized its benefits for American exports.

The intervention was carried out on July 31 after the Japanese yen fell to its lowest level against the dollar in four decades. The Treasury joined Japan in buying yen, with Tokyo spending a record $96.4 billion from late July to late August.

Bessent said that for this nominal amount, the Treasury was able to signal support for Japanese policy and make tens of millions of dollars on the operation, although that was not its primary goal.