Bessent Warns of Global Market Risks from Disorderly Yen Movements

US Treasury Secretary Scott Bessent has warned that disorderly yen movements could lead to 'forced unwinds' of positions, potentially destabilizing global markets and increasing borrowing costs for US households and businesses.

The warning comes as the yen continues to weaken against the dollar, despite expectations that the Bank of Japan may raise interest rates in the near term.

Bessent made his comments in a letter responding to Democratic Senator Elizabeth Warren's demand for an explanation of Washington's joint currency intervention with Tokyo last month.

The US and Japan carried out a rare joint yen-buying intervention on July 31, aiming to prevent a selloff in the yen from spilling over into global markets.