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US Treasury Secretary Scott Bessent voiced support for Japan's recent foreign exchange intervention, saying coordinated action with the United States had countered disorderly movements in the yen and indicating Washington's readiness for further joint intervention.
In a post on X, Bessent said the US Treasury remains in close communication with Japan's Ministry of Finance (MOF) and the Bank of Japan (BOJ). "We strongly support Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen," Bessent said. He added, "Treasury remains attentive and in close communication with our counterparts at MOF and BOJ. We will not hesitate to participate in further joint intervention." Praising the Japanese government's economic approach, Bessent said, "The Takaichi government is moving into an exciting new phase of Abenomics, as nearly 15 years of powerful stimulus have created durable, robust underlying economic dynamics." Abenomics refers to the economic policies introduced in 2012 by former Japanese Prime Minister Shinzo Abe, centred on aggressive monetary easing, flexible fiscal spending and structural reforms. Bessent also described the Federal Reserve's Foreign and International Monetary Authorities (FIMA) Repo Facility as an "important backstop" and said, "The FIMA Repo Facility is an important backstop. We should encourage it to be upsized in the coming months." Meanwhile, Japan's Ministry of Finance said Japan and the United States carried out a coordinated yen-buying intervention to address excessive volatility and disorderly movements in the Japanese currency. The ministry said the intervention was conducted in line with the Japan-US Finance Ministers' Joint Statement issued in September 2025 and added that further action could be taken if necessary, while indicating plans to use the Federal Reserve's FIMA Repo Facility in the future. (ANI)
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