Bessent Says Yen Decline 'Pretty Well Contained', No Need for Intervention
US Treasury Secretary Scott Bessent recently spoke to Reuters about the recent movements in the Japanese yen, stating that they are 'pretty well contained'. This assessment comes at a time when the yen has fallen below the 160-per-dollar mark, prompting concerns about potential intervention by Japan and the US. Bessent noted that he does not intend to direct the Bank of Japan (BOJ) on its monetary policy decisions but expressed confidence in BOJ Governor Kazuo Ueda's ability to make the right choices with support from Prime Minister Sanae Takaichi.
Bessent also hinted at the end of Abenomics, a reflationary program introduced by former Japanese Prime Minister Shinzo Abe. When asked if the BOJ should pursue more aggressive rate increases, Bessent declined to offer specific guidance, saying 'I'm not going to tell them what to do.'
The recent decline in the yen has raised questions about whether Japan and the US will act again to support the Japanese currency. While Bessent's comments may be seen as a reassurance that the situation is under control, some market observers remain cautious, awaiting further developments.