Treasury Secretary Scott Bessent said the United States supported Japan’s intervention to strengthen the yen because the currency’s weakness risked destabilizing markets across Asia. He stated that a stable yen was essential not only for the U.S. but for the entire region, given trade flows, the size of Japan’s economy and its contribution to the global savings market. Bessent warned that a weaker yen could trigger competitive currency devaluations across Asia, pointing to volatility in the South Korean won and concerns about China’s undervalued yuan. The two governments carried out a coordinated yen-buying intervention, which Bessent described as a response to the substantial undervaluation of the Japanese currency.
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