Bessent: Yen Moves 'Pretty Well Contained', No Disorderly Fluctuations
US Treasury Secretary Scott Bessent said that recent yen movements are 'pretty well contained,' implying they do not pose a significant threat to global markets.
Bessent's comments come as the yen has slid below the 160-per-dollar level, prompting concerns about potential intervention from Japan and the US. However, Bessent's statement suggests that the situation is under control, with no immediate need for joint action.
He also expressed confidence in Bank of Japan Governor Kazuo Ueda to make the right decisions regarding monetary policy, specifically concerning consecutive interest rate hikes to combat yen declines. This stance indicates trust in Japan's policy autonomy and willingness to let the BOJ take the lead.
Bessent's views on 'Takaichi-nomics,' a shift from Abenomics under Prime Minister Sanae Takaichi, emphasize deregulation and market-friendly reforms. He believes that Japan has already conquered deflation and can now enjoy the benefits of past policies aimed at rejuvenating its economy.