Bessent Issues Yen Strength Warning: Traders Who Fade May Be Hit
US Treasury Secretary Scott Bessent has issued a bold challenge to traders on Tuesday, saying he now operates with inside knowledge of Japanese policy moves.
'I am the house now,' Bessent said. 'And you can bet against me if you want.'
This comment suggests that Washington believes it has the upper hand in coordinating yen strength with Tokyo, effectively warning traders that betting against the yen means betting against a counterparty with policy visibility they do not have.
Bessent's statement comes as hedge funds are already positioned for the yen to strengthen sharply, with some targeting a move to 142.86 by November, according to Bloomberg.
The dollar-yen pair fell nearly 5% in the week through Tuesday as investors rushed to unwind yen-funded carry trades following hawkish comments from Bank of Japan Governor Kazuo Ueda.