Treasury Sec. Bessent: A stable yen is important not only for the U.S., but for the entire region

Summary

Treasury Secretary Scott Bessent discusses the U.S.-Japan coordinated yen-buying intervention, highlighting Japan's policy efforts to correct the yen's undervaluation and the U.S. optimism on Japan's policy path. He stresses that a stable yen is vital for regional stability, referencing historical Asian financial crises and the risk of other currencies following if the yen weakens significantly.

• U.S. and Japan conducted a coordinated yen-buying intervention.
• Bessent says Japan is committed to policies that will normalize the yen's value.
• The U.S. joined due to optimism about Japan's policy direction.
• A stable yen is important to prevent destabilizing moves in other Asian currencies like the Korean won.
• Bessent notes Chinese RMB is widely considered undervalued.
• Mentions Japan's improved fiscal discipline with a coming primary surplus and success of Abenomics in ending deflation.
• He refrains from predicting BOJ rate action but trusts Governor Ueda to do what's needed.