Bessent Warns of Global Market Risks from Disorderly Yen Moves
U.S. Treasury Secretary Scott Bessent defended Washington's decision to intervene in the yen, warning that disorderly currency moves could destabilize global markets and raise borrowing costs for U.S. households and businesses.
The intervention was carried out on July 31, when Japan and the United States jointly bought the yen to prevent a selloff in the currency 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 Washington's actions.
The yen has weakened against the dollar despite expectations that the Bank of Japan could raise interest rates in the near term. It briefly slipped below the 160-per-dollar level on Friday, a threshold widely seen as increasing the likelihood of intervention.