Treasury Secretary Scott Bessent Defends Japanese Yen Intervention

U.S. Treasury Secretary Scott Bessent testified before the House Financial Services Committee on Tuesday, defending a coordinated intervention to support the Japanese yen. The United States Department of the Treasury joined Japan in buying yen on July 31 after the currency reached a four-decade low against the dollar.

Bessent described the U.S. contribution as a nominal amount, estimated by analysts to be less than $1 billion. In contrast, the Government of Japan spent a record $96.4 billion between late July and late August to stabilize the currency. Bessent argued that a stronger yen benefits American exports and prevents Japan from selling U.S. assets to fund its own interventions.

While the operation generated tens of millions of dollars for the Treasury, Bessent stated this was not the primary objective. He urged the Bank of Japan to raise interest rates to further support the currency, warning that disorderly yen markets could destabilize global markets and increase borrowing costs for U.S. families and businesses.