Disorderly Yen Markets Could Raise U.S. Borrowing Costs: Bessent
Washington, Aug. 28 (Jiji Press)--U.S. Treasury Secretary Scott Bessent warned in a letter released on X on Friday that disorderly movements in the yen market could lead to higher borrowing costs in the United States, signaling concern about upward pressure on U.S. interest rates. "Disorderly yen markets can trigger forced unwinds, which could destabilize global markets and ultimately raise...
On August 28, U.S. Treasury Secretary Scott Bessent expressed worries in a letter that disorderly conditions in the yen market could result in elevated borrowing costs for Americans. The warning highlights a potential upward pressure on U.S. interest rates, which could have far-reaching impacts on families and businesses. Bessent's letter, in response to a query from U.S. Senator Elizabeth Warren, disclosed that the Treasury Department had exchanged foreign-currency assets for yen in line with stipulated regulations.
The department's intervention included selling euros and buying yen, although the exact quantities remain undisclosed. The U.S. dollar surged to a level above 160 yen for the first time in nearly a month, spurred by heightened expectations of an early rate increase by the Federal Reserve.
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