US Backs Japan in Yen Intervention Efforts

US Treasury Secretary Scott Bessent stated that his administration will do 'whatever it takes' to support Japan's efforts in stabilizing its currency, the yen. The statement came after the US Treasury and Japan's finance authorities intervened in markets last week to prop up the yen.

The yen has been experiencing significant fluctuations, trading at around 157 per dollar and reaching a four percent increase last week, its biggest weekly jump in two years. Bessent emphasized that the substantial undervaluation of the yen could trigger other economic problems or competitive devaluations of other currencies.

When asked about US participation in the joint intervention, Bessent did not provide details but mentioned that the US is happy to see Japan using a COVID-era Federal Reserve backstop for key central banks. This facility would allow the Bank of Japan to borrow up to $60 billion to support the yen.