Bessent defends 'modest' cost of US-Japan joint yen intervention
U.S. Treasury Secretary Scott Bessent on Tuesday defended his agency's participation with Japan in a joint currency intervention to prop up the Japanese yen at a "modest" cost, arguing that this was good for U.S. exporters and interest rates. Bessent told a House Financial Services Committee hearing that the U.S. was able to signal its support for Japanese policies, including Tokyo's desire for a…
US Treasury Secretary Scott Bessent defended the US's participation in a joint currency intervention with Japan to support the yen. According to Bessent, the intervention was done at a "modest cost" and was beneficial for US exporters and interest rates. A stronger yen, he argued, means the Japanese government does not have to sell US assets to defend its currency.
Bessent also stated that the US dollar remains the world's reserve currency, citing rising global transaction volumes as evidence of continued confidence in the US financial system. He attributed this to the Trump administration's efforts to provide regulatory, tax, trade, and energy certainty, which have attracted trillions of dollars into the United States.
The dollar's strength, Bessent said, should not be assessed solely by its exchange-rate value, but also by global economic behavior and demand for US financial assets. He noted that some countries have reduced their holdings of US dollar reserves, mainly driven by Russia and China, according to Live Mint.
Brief written by urgent.news from The Korea Times, Live Mint — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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