Bessent Denies Yen-Buying Intervention by U.S.

Washington, Jan. 28 (Jiji Press)–U.S. Treasury Secretary Scott Bessent on Wednesday denied that the United States is engaging in any dollar-selling, yen-buying intervention to guide the Japanese currency higher. Asked about the possibility of U.S. authorities conducting such intervention, Bessent said in an interview with CNBC, “Absolutely not.” “We don’t comment other than to say we have a strong dollar policy,” he added. Since late last week, the yen has strengthened against the dollar amid speculation about coordinated intervention by Japanese and U.S. authorities. The dollar briefly hit a three-month low below 152.50 yen in New York trading on Tuesday after U.S. President Donald Trump said that the value of the dollar is “great,” a remark taken to indicate that his administration is tolerating a weaker dollar. In the interview, Bessent said that “a strong dollar policy means setting the right fundamentals.” “If we have sound policies, the money will flow in, and we are bringing down our trade deficits, so automatically that should lead to more dollar strength over time,” he said. The dollar has continued to weaken against the euro and other currencies amid escalating tensions between the United States and Europe following Trump’s renewed intention to acquire the Danish autonomous territory of Greenland. The dollar’s weakness also reflects concerns over the loss of the independence of the U.S. Federal Reserve due to the president’s repeated calls for interest rate cuts. At a press conference on Wednesday, Fed Chairman Jerome Powell declined to comment on recent fluctuations in the dollar, saying that the Treasury Department is responsible for monitoring exchange rates. END [Copyright The Jiji Press, Ltd.]