US Treasury Chief Says Yen Moves 'Pretty Well Contained'

US Treasury Secretary Scott Bessent has said recent fluctuations in the Japanese yen are "pretty well contained," signalling that the currency's renewed weakness is not being viewed as the kind of disorderly movement that prompted a rare joint intervention by Japan and the United States last month.

Speaking ahead of the Group of 20 finance leaders' meeting in Asheville, North Carolina, Bessent expressed confidence in the stewardship of the Bank of Japan (BOJ). He said he expects Governor Kazuo Ueda to "do the right thing" on monetary policy, with the backing of Prime Minister Sanae Takaichi.

When asked whether the BOJ should consider consecutive interest rate hikes to counter yen declines, Bessent declined to offer direct advice. "I'm not going to tell them what to do," he said, while noting that the era of Abenomics — Japan's reflationary economic programme — has likely reached its end.

Bessent, who said he has known Ueda for 15 years, described the central bank chief as a "great economist" whose market savvy is underrated. He plans to meet Ueda on the sidelines of the two-day G20 gathering, which kicks off on Monday.

Asked directly whether the yen is still making disorderly moves, Bessent replied: "Oh, no. I think it's pretty well contained."