Disorderly Yen Markets Threaten Higher Borrowing Costs

U.S. Treasury Secretary Scott Bessent has expressed concern about the impact of disorderly yen markets on U.S. borrowing costs. In a letter to Sen. Elizabeth Warren, Bessent warned that forced unwinds in the yen market could destabilize global markets and lead to higher interest rates for American families and businesses.

The issue arose after the U.S. currency authorities intervened in the markets by selling euros and buying yen, but the scale of their purchases remains undisclosed. The dollar reached a high of 160 yen on Friday, with expectations growing that the Federal Reserve will raise interest rates soon.