Bessent Warns Yen Weakness Risks Asian Currency Depreciation

Treasury Secretary Scott Bessent has expressed concern over the yen's weakness, which he believes has contributed to Japan's inflation problem and heightened the risk of broader depreciation of Asian currencies. Speaking on CNBC, Bessent stated that a stable yen is crucial not only for the US but also for the entire Asia region.

The yen's current level could trigger competitive devaluations, according to Bessent, which he described as 'unhealthy'. This situation has led to renewed efforts to stabilize the currency and mitigate potential risks. The US has reaffirmed its support for these efforts, emphasizing the importance of a stable exchange rate.