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U.S. Scott Bessent, Japan confirm intervention
CNBC • • business
Key Points:
- Japan's finance ministry and the U.S. Treasury conducted a rare coordinated yen-buying intervention on Friday to curb sharp fluctuations in the Japanese currency, with Japan prepared to act again if necessary.
- The yen strengthened from a low of 163.73 per dollar to 157.57 after the intervention, addressing concerns over its recent decline to a four-decade low against the dollar.
- The intervention followed a joint statement from Japanese and U.S. finance ministers and included plans to use the Federal Reserve's FIMA repo facility for short-term dollar liquidity.
- U.S. Treasury Secretary Scott Bessent and President Donald Trump emphasized strong U.S. support for Japan's efforts to stabilize the yen, highlighting the move as a gesture of friendship and global economic stability.
- Some analysts, including Robin Brooks, expressed skepticism about the intervention's effectiveness, noting that the U.S. sold euros rather than dollars to fund the yen purchase, which could undermine market confidence.
