US Backs Japan's Currency Intervention to Support Yen Stability

US Treasury Secretary Scott Bessent confirmed that Washington participated in Japan's recent currency intervention to support the yen, citing its importance for regional economic stability.

The move was aimed at addressing the yen's substantial undervaluation, which Bessent believes contributed to the Asian financial crisis of the late 1990s due to an 'overly weak yen.'

He praised Japan's efforts to tackle sluggish growth through its policy mix and expressed optimism about the country's policy path.

The intervention was the first since 2011, when the US and other G7 members sold the yen to curb its rise following a catastrophic earthquake and tsunami in Japan.