US Treasury Backs Yen Support for Exporters
Treasury Secretary Scott Bessent states that the joint currency intervention with Japan improved conditions for American trade.
U.S. Treasury Secretary Scott Bessent stated that the coordinated foreign exchange intervention with Japan in late July benefited American exporters. The official declared that a stronger Japanese yen is advantageous for U.S. trade.
The United States joined Japan in buying yen on July 31. The Japanese currency had weakened to a 40-year low near 164 against the U.S. dollar. This marked the first joint yen-buying operation between the two nations since 1998.
Intervention supports trade interests
Bessent testified before the House Financial Services Committee that the U.S. provided only a nominal amount of capital for the operation. He argued that supporting the yen prevented upward pressure on U.S. interest rates. A stronger yen reduces the need for Japan to sell U.S. assets to finance currency defense.
Japan remains the largest foreign holder of U.S. Treasury securities. Bessent noted that stable currency levels protect the broader financial relationship between the two countries. The intervention aimed to prevent excessive volatility in exchange rates.
Diplomatic meetings scheduled for September
The Treasury Secretary confirmed plans to meet Chinese Vice Premier He Lifeng this weekend. The meeting will prepare for President Donald Trump’s summit with Chinese President Xi Jinping. Trump is scheduled to host Xi at the White House on September 24.
Bessent described recent private discussions with Beijing as productive. He expects these talks to continue during the state visit. The meetings address financial transactions and trade issues between the two economies.
