US Treasury Secretary Scott Bessent said the United States will do everything it can to support Japan in stabilizing the yen, warning that further depreciation could spill into other Asian currencies and spark competitive devaluations. Bessent's comments follow last week's joint US-Japan intervention in the foreign exchange market, the first coordinated action between the two governments since 2011. According to Bessent, the yen's weakness has already raised import costs and stepped up inflation pressure in Japan. He cautioned that an additional slide in the currency could have broader consequences across Asia and lead countries to devalue in response. Intervention can send a useful signal to markets, Bessent said, but it must go together with monetary and fiscal policy adjustments. He also voiced confidence in Japan's new government as it pursues budget discipline, and in measures being taken by the Bank of Japan. Bessent emphasized that currency support alone is not enough, and that Japan's policy framework needs to back it up. The Treasury secretary's comments were reported by CryptoBriefing via Techub.
US Treasury Secretary Scott Bessent said Washington will do everything in its power to help Japan stabilize the yen. His comment came after the US and Japan intervened in currency markets last week for the first time since 2011.
Bessent said a weak yen has already pushed up import costs and increased inflationary pressure. He warned that any further slide could affect other Asian currencies and lead to competitive devaluations.
Intervention can send a signal to markets, Bessent added, but it must also be paired with monetary and fiscal policy adjustments. He expressed confidence in Japan's new government as it pursues budget discipline, and in measures being taken by the Bank of Japan.
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