Bessent Downplays Yen Weakness, Backs Ueda's Monetary Policy

Treasury Secretary Scott Bessent has downplayed recent yen moves, saying they remain well contained. He pushed back on suggestions that the currency's renewed weakness resembles the disorderly moves that prompted a rare joint US-Japan intervention last month.

Bessent said he sees no need to characterise the yen's current trajectory as disorderly, and praised Bank of Japan Governor Kazuo Ueda as a highly capable and underrated market operator. He described Ueda as someone who will make the right calls on monetary policy with Prime Minister Sanae Takaichi's backing.

Bessent declined to say whether the BOJ should pursue consecutive interest rate hikes to support the currency, saying he won't tell the central bank what to do. He suggested that Japan has likely reached the end of Abenomics, and that with less government intervention in economic policy under Takaichi, Japan should allow the gains already achieved under that program to continue rather than pursue further active stimulus.