US Treasury Secretary Bessent stated on the 4th that all tools will be deployed to stabilize the yen, expressing hope for an additional rate hike by Bank of Japan Governor Kazuo Ueda. Japanese and US monetary authorities conducted their first coordinated yen-buying intervention in about 28 years on July 31, and Bessent said he has built a very good relationship with Finance Minister Satsuki Katayama, emphasizing that Japan is seriously working to stem the yen's significant undervaluation. He pointed out that yen stability is extremely important not only for the United States but for the region, and voiced concern that a sharp depreciation of the yen could spill over into other currencies, also warning of excessively volatile moves in the South Korean won.
Bessent hopes for BOJ rate hike, which would push yields up.
