During the opening day of the Group of 20 finance ministers’ gathering in Asheville, North Carolina, U.S. Treasury Secretary Scott Bessent addressed concerns about the Japanese yen’s recent slide. Bessent told Reuters the currency’s moves are “pretty well contained,” indicating that officials do not view the decline as disorderly enough to trigger a joint intervention like the one that occurred last month.
Confidence in Japan’s monetary policy
Bessent said he expects Bank of Japan Governor Kazuo Ueda to “do the right thing” on monetary policy, noting that Governor Ueda has the backing of Prime Minister Sanae Takaichi. When asked whether the BOJ should consider consecutive interest‑rate hikes to curb the yen’s weakness, Bessent replied, “I’m not going to tell them what to do. I do think we probably reached the end of Abenomics, which was a reflationary program.”
Personal rapport adds optimism
Having known Governor Ueda for 15 years, Bessent praised the Japanese economist as “great” and “under‑rated in how savvy he is on markets.” The Treasury secretary said the two will meet on the sidelines of the G20 finance leaders’ two‑day session, which begins Monday in Asheville.
Implications for U.S. businesses and families
Stability in the yen matters to American exporters, travelers, and families with ties to Japan. A contained decline helps keep the cost of imported goods and travel reasonable, supporting household budgets and local businesses that rely on Japanese trade partners.
Broader economic context
The yen’s recent weakness follows a period of aggressive monetary easing in Japan and a stronger U.S. dollar. While the Treasury does not set foreign‑exchange policy, Bessent’s remarks signal that Washington is monitoring the situation closely and hopes for coordinated action that protects both economies.
Looking ahead
As the G20 finance ministers continue their discussions, the focus will remain on global growth, inflation pressures, and the health of major currencies. Bessent’s comments suggest that, for now, the United States believes the yen’s movements are manageable and that Japan’s central bank will take appropriate steps when needed.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
