Bessent Threatens Repeat Yen Intervention as Fed Facility Upgrade Sought

US Treasury Secretary Scott Bessent has stated that he is prepared to intervene in the yen market again, alongside Japan's government, if necessary. The intervention would be aimed at countering disorderly movements of the yen against the US dollar.

Last week, the yen hit a 40-year low against the dollar, prompting the coordinated action on Friday. Bessent praised Tokyo for its decisive steps to correct the undervaluation of the yen and stated that he will not hesitate to participate in further joint intervention if needed.

Bessent also called for an increase in the Federal Reserve's Foreign and International Monetary Authorities lending facility, known as FIMA. This facility allows countries holding Treasury securities at the New York Fed to borrow up to $60 billion in US dollar loans for up to seven days.