Bessent Pledges Repeat Intervention with Japan Amid Yen Turmoil
US Treasury Secretary Scott Bessent has stated that he is prepared to intervene in foreign exchange markets again, this time alongside Japan. The coordinated action aims to counter disorderly yen movements and stabilize the currency.
Last week, the yen hit new 40-year lows against the dollar, prompting a joint intervention with the US. The US Treasury Secretary praised the direction of Japan's current government, led by Prime Minister Sanae Takaichi, saying it is 'moving into an exciting new phase of Abenomics.'
Bessent also expressed support for increasing the Federal Reserve's Foreign and International Monetary Authorities (FIMA) lending facility. This would provide a backstop for foreign central banks and monetary authorities during times of market stress.