Bessent cites volatility in Korean won while stressing stable yen's importance

U.S. Treasury Secretary Scott Bessent remarked on Tuesday that the South Korean won has been experiencing "excess volatility," emphasizing the significance of a stable yen for the entire region. This statement came following a joint intervention by the United States and Japan in the foreign exchange market last week, aimed at stabilizing the Japanese currency.

Bessent made these comments during a CNBC interview, highlighting that a stable yen is crucial not only for the U.S. but also for the entire region, as a substantial weakening of the yen could lead to a similar decline in other currencies. The Treasury Secretary also pointed out that excess volatility in the Korean won has been observed, and he drew a connection to the Asian financial crisis in the 1990s, which he believes was partly triggered by an "overly weak" yen.

When discussing the recent market intervention, Bessent expressed optimism that the right policies in Japan will help the yen return to a more typical equilibrium price.