Interview Overview
On 31 August 2026, U.S. Treasury Secretary Scott Bessent told Reuters that recent movements in the Japanese yen are "pretty well contained," indicating that the currency’s latest decline does not constitute the disorderly trading that prompted a rare joint intervention by Japan and the United States the previous month.
Yen Movement Details
The yen slipped below the 160‑per‑dollar threshold on Friday, a level many market observers consider a trigger for possible intervention. Despite breaching this mark, Bessent emphasized that the slide was not severe enough to warrant another coordinated response.
Stance on BOJ Policy
When asked whether the Bank of Japan should adopt more aggressive rate hikes, Bessent replied, "I’m not going to tell them what to do," but added that he believes Governor Kazuo Ueda will "do the right thing" and that the BOJ has the backing of Prime Minister Sanae Takaichi.
Commentary on Abenomics
Bessent observed that Japan has likely reached the end of the Abenomics programme, describing it as a reflationary initiative that has run its course. He linked this assessment to the current yen dynamics, noting that the currency’s decline does not necessitate further intervention.
Contextual Note
The interview was generated with AI assistance and reviewed by an editor, as indicated in the article’s disclaimer.