U.S. Treasury Secretary Stresses Importance of Stable Yen

U.S. Treasury Secretary Scott Bessent has emphasized the importance of a stable yen for the entire region, citing its potential to trigger currency instability in other countries.

In an interview with CNBC, Bessent stated that Korea's currency has experienced 'excess volatility' and warned that a weak yen could lead to competitive devaluations.

Bessent's remarks come after the U.S. and Japan jointly intervened in the foreign exchange market last week to boost the Japanese currency.

The secretary also touched on the 'carry trade,' a strategy where investors borrow money in yen or other low-interest currencies to invest in high-yielding ones, and predicted that it will not disappear entirely.