Bessent Warns Yen Weakness Threatens Global Economy
US Treasury Secretary Scott Bessent has expressed concerns about the Japanese Yen's impact on regional currencies. The Yen's weakness has contributed to Japan's inflation problem and raised the risk of broader depreciation of Asian currencies, Bessent said.
Bessent emphasized that a stable Yen is not only important for the US but also crucial for the entire region of Asia. He noted that if the Yen were to weaken substantially, other currencies such as the Korean Won and Chinese RMB would likely follow suit.
The Treasury Secretary stated that Washington is in close contact with Japan and will take necessary measures to support them while ensuring the stability of the global economy. Bessent expressed confidence in Bank of Japan Governor Kazuo Ueda's market savvy, but also highlighted the need for a stable Yen to prevent competitive devaluations.
The remarks came as USD/JPY traded at 157.65, down 0.04% on the day.