According to a CNBC report on August 4, US Treasury Secretary Bessent stated Tuesday that the Trump administration will support Japan’s efforts to stabilize its currency market “at all costs,” but only under conditions that benefit the US economy.
In a CNBC interview, he said: “We’ll go all out to support Japan, provided it’s good for the American economy and American taxpayers.”
Bessent revealed that the US has joined Japan’s joint intervention to boost the yen, explaining that sustained yen weakness could destabilize the entire Asian market and even trigger competitive devaluations among other currencies—”a very unhealthy scenario.”
He stressed: “Given trade flows, economic scale, and Japan’s contribution to global savings markets, keeping the yen stable is absolutely critical. The Japanese government understands this, and we’re honored to work alongside them to implement related policies that support regional stability.”
The outlet noted that this joint intervention marks a rare instance of Washington backing another major currency, highlighting concerns that prolonged yen weakness could fuel Japanese inflation, weigh on other Asian currencies, and disrupt global markets.
As part of the coordinated effort, the US Treasury sold euros from its foreign exchange reserves and used the proceeds to buy yen. Bessent said he had explained to European officials that the euro sales were simply a reallocation of reserve assets.
“In my view, the euro is already closer to equilibrium levels,” Bessent said. “I won’t comment on where the euro should trade, but the real issue is that the yen is severely undervalued right now, and what the Japanese government is doing about it.”
However, Bessent also emphasized that buying yen can only curb market volatility in the short term—Japan still needs fundamental policy adjustments to address the deeper forces driving yen weakness. He declined to comment on whether the Bank of Japan should raise interest rates.
When asked about a Reuters photo last week showing his “to-do” list with “buy $5–10 billion yen” written on it, Bessent joked: “I just wanted those reporters sneaking peeks over my shoulder to know—the yen’s symbol is JPY.”
He added that he had considered writing things like “lunch with Iran’s supreme leader” or “tennis with Putin” on the list, “but in the end, I just wrote down buying $5–10 billion yen.”