Bessent Downplays Yen Moves as 'Pretty Well Contained'

U.S. Treasury Secretary Scott Bessent said recent yen moves are 'pretty well contained,' contradicting his previous description of them as 'disorderly.' This assessment comes after the Japanese currency slid below the 160-per-dollar level, a threshold that could have triggered another joint intervention with the United States.

Bessent made these comments in an interview with Reuters on Sunday, ahead of the Group of 20 finance leaders' gathering in Asheville, North Carolina. He plans to meet Bank of Japan Governor Kazuo Ueda during this event, and expressed confidence that Ueda will 'do the right thing' on monetary policy.

When asked about potential interest rate hikes to combat yen declines, Bessent said he's not going to tell the BOJ what to do. However, he believes they've likely reached the end of Abenomics, a reflationary program launched in 2013 under Prime Minister Shinzo Abe.

Bessent also referenced 'Takaichi-nomics,' the economic policies implemented by Prime Minister Sanae Takaichi, which are more shareholder-friendly and involve substantial deregulation. He recommended that Japan should 'just sit back and enjoy the success of Abenomics' rather than trying to aggressively boost its economy.