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Bessent Backs Japan’s Yen-Stabilization Efforts, Says Further Slide Could Weigh on Other Currencies
Summary
- US Treasury Secretary Scott Bessent said he supports the Japanese government’s efforts to stabilize the yen.
- Bessent said continued yen weakness could also affect other countries’ currencies.
- He added that there is no reason for Japan to halt its large-scale accumulation of overseas assets, and that many people see the yuan as undervalued.
US Treasury Secretary Scott Bessent said he supports the Japanese government’s efforts to stabilize the yen, warning that further weakness in the currency could spill over into other countries’ currencies.
Walter Bloomberg reported on Aug. 4 that Bessent told CNBC the US government is in close contact with Japan over intervention in the yen market.
“There should be clear standards and a framework for intervention in the yen market,” Bessent said. “Japan is making serious efforts to prevent further declines in its currency.”
He said he believes the Bank of Japan will take the necessary steps. If the yen weakens further, other currencies could come under pressure as well.
Bessent also said there is no reason for Japan to stop building up overseas assets on a large scale.
On China’s yuan, he added that many people view the currency as undervalued.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.