Bessent Warns Disorderly Yen Moves Pose Global Market Risk

U.S. Treasury Secretary Scott Bessent has defended Washington's decision to intervene in the yen market, warning that disorderly currency moves could destabilize global markets and raise borrowing costs for U.S. households and businesses.

The intervention, carried out jointly with Japan on July 31, aimed to prevent a selloff in the yen and Japanese government bonds from spilling over into global markets.

Bessent made his comments in an August 27 letter responding to Democratic Senator Elizabeth Warren's demand for an explanation of the joint currency intervention.

The yen has recovered somewhat from its recent low near 164 per dollar, but has weakened back toward 160 after surging to 155.20 following the intervention.