Bessent Warns Disorderly Yen Moves Threaten Global Markets

US Treasury Secretary Scott Bessent warned that disorderly yen movements could trigger 'forced unwinds' of positions, risking global market destabilization and higher borrowing costs for US households and businesses.

The warning came in a letter dated August 27, responding to Democratic Senator Elizabeth Warren's request for an explanation of the joint currency intervention with Tokyo last month.

The unusual joint yen-buying intervention on July 31 was meant to prevent a sell-off in the yen and Japanese government bonds from spilling over into global markets.