Bessent joins Japan to help reverse months of yen losses
The degree of coordination between the two countries now appears to be the tightest in decades, which has raised the stakes for traders betting against the yen.
US Treasury Secretary Scott Bessent has joined Japan in efforts to reverse months of yen losses, with the currency reaching its strongest level since early May at 157.40 to the dollar by the close of New York trading on Friday. The intervention, which included direct purchases of the yen and calls for banks to trade the currency, has been described as the most coordinated in decades, raising the stakes for traders betting against the yen.
The sharp gains were driven by concerns about rising import costs and the yen's role in global markets, as well as Bessent's comments indicating that he believes the yen is undervalued.
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Also reported by 3 other outlets
- Analysis: Federal Reserve may be pulled into Bessent’s effort to support Japan’s yen cnbc.com
- Bessent’s yen rescue to boost U.S. pressure on Japan trade, rates japantimes.co.jp
- A little-used Fed backstop is being put to a use it was never designed for—bankrolling Japan’s defense of the yen—and Treasury Secretary Scott Bessent wants it to be expanded wsj.com
