US Treasury Secretary Defends Yen Intervention: 'Symbolic' Funds Deployed

U.S. Treasury Secretary Bessent defended the U.S. purchase of yen in a recent hearing, stating that only 'symbolic' funds were deployed. The intervention was coordinated with Japan to buy yen and strengthen its currency.

Bessent argued that a stronger yen benefits U.S. exports as it makes them more competitive against Japanese products. He also stated that a stronger yen means the Japanese government would not have to sell U.S. dollar-denominated assets, including potentially reducing its holdings of U.S. Treasuries.

The intervention was made in response to the yen's sharp depreciation and Japan's subsequent intervention in the foreign-exchange market. The U.S. Treasury Department has estimated that it only used funds significantly below $1 billion for this operation, while Japan spent a record $96.4 billion to buy yen from late July to late August.