Bessent Warns Disorderly Yen Could Spark Global Market Instability

U.S. Treasury Secretary Scott Bessent warned that disorderly yen movements could destabilize global markets and raise borrowing costs for U.S. households and businesses.

In a letter to Democratic Senator Elizabeth Warren, Bessent explained the reasoning behind Washington's joint currency intervention with Tokyo last month.

The intervention, which took place on July 31, aimed to prevent a selloff in the yen and Japanese government bonds from spilling over into global markets.

Bessent said that the Treasury conducted the intervention by exchanging foreign-currency assets held in its Exchange Stabilization Fund (ESF) for yen, citing Argentina as an example of successful crisis management.