In a letter published on X, US Treasury Secretary Scott Bessent warned that sharp swings in the yen could trigger an unwinding of investment positions and destabilize global markets. He also addressed the background to the yen-buying intervention and its legal basis.
In a letter posted on X, US Treasury Secretary Scott Bessent said disorderly moves in the yen could destabilize global markets and potentially raise borrowing costs for US households and businesses. The remarks underscored renewed concerns about higher interest rates.
The letter was published in response to questions from opposition lawmakers regarding the yen-buying intervention at the end of July. The Treasury authorities are said to have exchanged foreign-currency assets for yen, but did not disclose details such as the amount of yen purchased.
The explanation also stated that, under the law establishing the Exchange Stabilization Fund, the Treasury secretary has the authority to conduct foreign-exchange transactions with presidential approval in support of an orderly exchange-rate system.
Both articles report official explanations of the background to the foreign-exchange intervention and its legal framework.