Treasury Secretary Scott Bessent said the US would continue supporting Japan’s efforts to stabilize the yen after the two countries jointly intervened in currency markets last week.
“We will do whatever it takes to support them in a way that helps the American economy, the American taxpayer,” Bessent said during a CNBC interview Tuesday.
Bessent said the yen’s weakness had contributed to Japan’s inflation problem by increasing the cost of imported goods, including energy. He also warned that a further decline could place pressure on other Asian currencies and lead to competitive devaluations.
The Treasury secretary cited recent volatility in the Korean won and said many market participants believe China’s renminbi remains undervalued.
The comments came after the US Treasury joined Japanese authorities in purchasing yen last week. The operation marked the first coordinated intervention involving the two countries since 2011.
