U.S. Treasury Secretary Scott Bessent said that fluctuations in the yen exchange rate are quite restrained and do not reflect disorderly movements. Ahead of the G20 meeting of finance ministers and central bank governors, he gave his views on conditions following the joint intervention by Japan and the United States and on the Bank of Japan’s response.
Ahead of the G20 meeting of finance ministers and central bank governors opening in Asheville, U.S. Treasury Secretary Scott Bessent said recent fluctuations in the yen exchange rate were “quite restrained,” indicating that a renewed decline in the yen was not considered a disorderly movement.
On Friday, the yen-dollar rate fell below ¥160 per dollar, and reports said that views were spreading that the likelihood of intervention was increasing, bringing renewed yen-supporting intervention by Japan and the United States into focus for the market.
Asked whether the Bank of Japan should consider successive rate hikes to counter the yen’s weakness, Bessent said he expected Governor Ueda Kazuo (植田 和男) to make the appropriate decision with the support of Prime Minister Takaichi (高市). He also added that Abenomics, a reflationary policy, may have come to an end.
Bessent said he did not intend to give direct instructions on the pace of the BOJ’s rate hikes, and indicated that the BOJ had shifted toward “Takaichinomics,” aimed at promoting growth after overcoming deflation. He also reaffirmed his cautious stance on Japan’s fiscal policy.