Bessent's Yen Pledge Sparks Skepticism Over Firepower

Treasury Secretary Scott Bessent's suggestion of a 'whatever-it-takes' approach to helping Japan rescue the yen has raised concerns that he lacks the firepower to make it happen. The Japanese currency slid as much as 1% on Monday, erasing half the gains triggered by the first US-Japan joint intervention since 1998.

The yen dropped past 159 per dollar after having made a run at 155 in the wake of the July 31 actions. Bessent's pledge to do 'whatever it takes' to support the yen has been seen as a bold statement, but market participants are flagging his limited ability to deliver on that promise.