Bessent defends 'modest' cost of US-Japan joint yen intervention
A man walks past an electronic quotation board displaying the foreign exchange rate of the Japanese yen against the U.S. dollar in Tokyo, Monday. AFP-Yonhap
U.S. Treasury Secretary Scott Bessent on Tuesday defended his agency's participation with Japan in a joint currency intervention to prop up the Japanese yen at a "modest" cost, arguing that this was good for U.S. exporters and interest rates.
Bessent told a House Financial Services Committee hearing that the U.S. was able to signal its support for Japanese policies, including Tokyo's desire for a stronger yen, for a "modest amount" of U.S. resources.
"And a stronger yen is better for American exporters. A stronger yen means that the Japanese government does not have to sell U.S. assets" to defend its currency, Bessent said.