Bessent Downplays Yen Decline, Sees Contained Moves

U.S. Treasury Secretary Scott Bessent downplayed recent yen moves as 'pretty well contained,' indicating they don't view the Japanese currency's decline as disorderly enough to warrant a rare joint intervention with the United States.

The yen fell below 160 per dollar on Friday, raising concerns about potential intervention and prompting attention on whether Washington and Tokyo would step in to support the currency.

Bessent met with Reuters on Sunday, saying he expects Bank of Japan Governor Kazuo Ueda to 'do the right thing' on monetary policy, backed by Prime Minister Sanae Takaichi, who has called for consecutive interest rate hikes to combat yen declines.

The BOJ is set to raise its rate as soon as September 17 and 18, with sources indicating a possible increase in the pace of rate hikes after that. Bessent praised Ueda's economic savvy, saying he's underrated in how well he understands markets.