US Joins Japan in Yen Intervention Amid Stability Concerns
The United States has joined Japan in a currency intervention aimed at stabilizing the Asian economy. According to Treasury Secretary Scott Bessent, the substantial undervaluation of the Japanese yen poses a serious risk to economic stability in Asia.
Bessent cited the Asian financial crisis of the late 1990s as an example of how an overly weak yen can have far-reaching consequences. He stated that a stable yen is crucial for the entire region, and that if it were to weaken substantially, other currencies would follow suit.
The joint intervention, which took place on Friday, was the first since 2011. Bessent praised Japan's efforts to tackle sluggish economic growth through its policy mix of monetary easing, fiscal stimulus, and structural reforms, known as 'Abenomics.'