Bessent Downplays Yen Decline Concerns, Supports BOJ's Inaction

U.S. Treasury Secretary Scott Bessent has downplayed concerns over the recent decline of the yen, stating that its movements are 'pretty well contained'. This reassurance comes as the Japanese currency fell below the 160-per-dollar mark on Friday, a threshold many market observers view as increasing the chance of intervention.

Bessent made these comments in a Reuters interview, where he also expressed his expectation that BOJ Governor Kazuo Ueda will 'do the right thing' with support from Prime Minister Sanae Takaichi. When asked if the BOJ should pursue more aggressive rate increases, Bessent replied, 'I'm not going to tell them what to do.'

Notably, Bessent suggested that Japan's Abenomics program, a reflationary policy introduced by former Prime Minister Shinzo Abe, may have reached its limits.