US Treasury Secretary Reveals Joint Intervention with Japan in Yen to Support Asian Economic Stability
Digital FinanceMacro
Scott Bessent, the US Treasury Secretary, revealed that the United States decided to join Japan in intervening in the currency market, viewing the sharp depreciation of the yen as a serious risk to economic stability in Asia. Bessent said in an interview with CNBC on Tuesday, August 4, that a stable yen is critically important for the entire region, because if the yen weakens significantly, other currencies will also depreciate. The interview came two days after he confirmed that the US and Japan intervened in the foreign exchange market in New York on Friday, July 31, to support the yen, which had plunged to a 40-year low against the US dollar in late July. The previous joint intervention through yen buying occurred in 1998 during the financial crisis. Bessent also said he has an excellent working relationship with Japanese Finance Minister Satsuki Katayama, and believes the Japanese government will continue to take appropriate measures to bring the yen back to a more normal equilibrium price. He praised Japan's efforts to tackle economic stagnation through Abenomics, noting that Japan has emerged from deflation and is recovering.
