US Treasury Vows to Support Yen Amid Economic Concerns

The US Treasury has pledged to support Japan in stabilizing its currency, the yen, which has been plummeting due to a weak economy and aggressive monetary policies. In an interview with CNBC, Treasury Secretary Scott Bessent said that the US will 'do whatever it takes' to help Japan stabilize its currency.

Bessent confirmed that the US had joined Japan's finance authorities in an intervention last week to prop up the yen, which has been trading at around 157 per dollar. The yen had hit a 40-year low near 164 but has strengthened by almost four percent in the past week.

The Treasury chief did not disclose the specifics of the US participation in the joint intervention with Japan. However, he mentioned that the Japanese government wants to use a COVID-era Federal Reserve backstop for key central banks, which would allow the Bank of Japan to borrow up to $60 billion to support the yen.