Bessent Urges Japan to Adopt Market-Changing Policies Amid Yen Weakness

U.S. Treasury Secretary Scott Bessent has urged Japan to adopt market-changing policies to correct the yen's weakness, going beyond currency intervention alone.

In an interview with CNBC on August 4, Bessent emphasized that while intervention can send a signal, it's ultimately policy that changes markets.

Bessent referenced how past episodes of yen strength were corrected by the economic policies of the second Abe administration, known as Abenomics. He expressed optimism about Japan's policy management and hinted at expectations for an additional rate hike by the Bank of Japan (BOJ).