U.S. Treasury Secretary Scott Bessent said on Sunday that recent moves in the yen remain contained and do not necessitate pressure on the Bank of Japan (BOJ) to adjust interest rates.
The yen weakened past the 160-per-dollar level on Friday, a threshold that has historically heightened concerns about potential intervention. Bessent, speaking in an interview, described the yen’s decline as "pretty well contained," distinguishing it from the disorderly trading that prompted a rare joint intervention by Japan and the United States last month.
Bessent emphasized that he would not direct the BOJ on monetary policy decisions, stating, "I'm not going to tell them what to do." He added that he expects BOJ Governor Kazuo Ueda and Prime Minister Sanae Takaichi to "do the right thing" in managing the currency’s trajectory. Bessent also noted that the era of Abenomics, Japan’s reflationary economic program, has likely concluded.
Market observers have pointed to the yen’s breach of 160 per dollar as a catalyst for increased speculation about possible intervention, though Bessent’s remarks suggest policymakers view the current moves as manageable without immediate action.
