Bessent says yen moves ‘pretty contained’ and not disorderly

On August 30, US Treasury Secretary Scott Bessent told Reuters that recent movements in the yen were "pretty well contained," implying that the recent declines were not considered disorderly. These moves led the yen to fall below the 160-per-dollar level on August 28, raising concerns about possible intervention by the US and Japan.

In the interview, Bessent also expressed confidence in Bank of Japan Governor Kazuo Ueda's decision-making, despite not instructing the central bank to take any specific actions. Japan's efforts to combat the yen's decline, known as Abenomics, have ended, and Bessent suggested the Japanese economy should now benefit from a new approach, "Takaichi-nomics," under Prime Minister Sanae Takaichi.

The US and Japan jointly intervened in the currency market in July to prevent a worsening situation, but the yen's decline persisted, hampering Japanese policymakers. Bessent's comments come ahead of the Bank of Japan's policy meeting on September 17 and 18, where it is expected to raise interest rates.