Treasury Secretary Scott Bessent said he has insight into Japan’s policy plans and warned traders they could ‘bet against’ him if they choose|@SecScottBessent|X
Treasury Secretary Scott Bessent is daring traders to bet against his efforts to strengthen Japan’s yen, arguing that his close coordination with Japanese officials gives him an edge.
Speaking at Southern Methodist University in Texas, Bessent said he has insight into Japan’s policy plans and warned traders they could “bet against” him if they choose. His comments highlight his increasingly aggressive role in currency markets.
Yen gains momentum
Bessent worked with Japan on joint yen purchases on July 31, marking the first US intervention in the currency in decades.
Japan has since spent about $96.4 billion supporting the yen after it hit a four-decade low.
The yen has strengthened as traders expect the Bank of Japan to raise rates.
Higher rates make Japanese assets more attractive, increasing demand for yen. They can also prompt investors to unwind yen-funded carry trades, further supporting the currency.