U.S. Backs Japan in Yen Stabilization Efforts

The U.S. Treasury Secretary Scott Bessent has stated that Washington will help Japan stabilize the yen, and expects the Bank of Japan (BOJ) to take necessary measures to address the currency's depreciation.

In an interview with CNBC, Bessent said he believes BOJ Governor Kazuo Ueda will do what is needed to stabilize the yen, which has been experiencing significant undervaluation.

The BOJ last raised its target interest rate in June, increasing it to around 1% from 0.75%. The Treasury Secretary stated that a stable yen is crucial not only for the U.S., but also for the entire region, noting that excessive volatility in other currencies, such as the South Korean won, may be linked to the yen's depreciation.

Bessent emphasized his good working relationship with Japanese Finance Minister Satsuki Katayama and acknowledged Tokyo's efforts to stem the yen's undervaluation.