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U.S. Treasury Secretary Scott Bessent warns that disorderly yen markets could increase borrowing costs for American families and businesses.

U.S. Treasury Secretary Scott Bessent warned that disorderly movements in the yen market could lead to higher borrowing costs for American families and businesses. In a letter released on X, Bessent addressed concerns regarding the U.S. currency authorities' yen-buying intervention in late July. He noted that the U.S. Treasury Department exchanged existing Exchange Stabilization Fund foreign-currency assets for yen to stabilize the market. While the intervention was intended to prop up the sagging yen, some critics argue the positive effects were short-lived. However, Japanese equities remain stable despite the market fluctuations. The dollar topped 160 yen for the first time in a month as investors anticipate an early interest rate hike by the U.S. Federal Reserve. Bessent's warning highlights the potential for global market instability if the yen market remains volatile.

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