Bessent's Yen Bet Pays Off as Currency Hits Seven-Month High
US Treasury Secretary Scott Bessent's bet on the yen has paid off so far. The Japanese currency reached an almost seven-month high against the U.S. dollar in Asia on Tuesday, a sharp turnaround from July when the US and Japan jointly intervened in the foreign-exchange market to curb the yen's seemingly inexorable slide.
The rally is driven by mounting concerns over global economic growth, which has led investors to seek safe-haven assets like the yen. In July, Bessent expressed his optimism about the yen's prospects, saying he had good insight into the Bank of Japan (BOJ) and Japanese policymakers' next moves, including potential yen intervention.
Bessent also weighed in on the Canada-US trade spat, stating that a Canada trade war would only add 0.02% to US inflation, and that there is a short-term energy spike driving current inflation concerns.