Bessent Warns Disorderly Yen Could Destabilize Global Markets

US Treasury Secretary Scott Bessent warned that disorderly movements in the yen could destabilize global markets and raise borrowing costs for American households and businesses.

In a letter dated August 27, posted on his X account on August 28, Bessent responded to Democratic Sen. Elizabeth Warren's demand for an explanation of Washington's joint currency intervention with Tokyo last month.

The rare joint yen-buying intervention on July 31 aimed to prevent a selloff in the yen and Japanese government bonds from spilling over into global markets.

Bessent explained that the Treasury conducted the intervention by exchanging foreign-currency assets held in its Exchange Stabilization Fund (ESF) for yen, using it as an emergency reserve managed by the US Treasury to stabilize foreign-exchange and domestic financial markets.