Bessent Warns Yen Weakness Could Fuel Inflation, Create Broader Risks

US Treasury Secretary Scott Bessent has expressed concerns that continued weakness in the Japanese yen could contribute to higher inflation in Japan and create broader risks for other Asian currencies.

Bessent's comments, reported by Bloomberg, highlight growing concerns among international policymakers about sharp currency fluctuations affecting global markets.

A weaker yen can have mixed effects on an economy: while it benefits exporters by making their products cheaper overseas, it also increases the cost of imported energy, food, and raw materials.