Bessent Defends US Yen Intervention as 'Nominal'

Treasury Secretary Scott Bessent defended the US's coordinated intervention to support Japan's currency, calling it 'nominal' in terms of the amount used. The operation was done in conjunction with Japan, which spent a record $96.4 billion on yen purchases from late July to late August.

Bessent stated that using a stronger yen benefits American exports and means the Japanese government will not need to sell US assets to finance foreign currency intervention. He added that for this small amount, the Treasury was able to signal support for Japanese policy.

The Treasury Secretary has suggested in recent weeks that he wants to see the Bank of Japan raising interest rates to support the yen. Bessent also mentioned that the Treasury made tens of millions of dollars on the operation, although this wasn't the goal.