Bicent: US support for yen is symbolic
U.S. Treasury Secretary, Scott Bispensent, stated that the coordinated intervention by the United States with Japan to support the yen was merely symbolic, as the department used less than one billion dollars in an attempt to strengthen the Japanese currency, which has fallen to its lowest level in four decades. He confirmed that a rise in the value of the yen benefits U.S. exports and prevents Japan from selling American assets. He pointed out that Japan spent $96.4 billion between July and August buying yen, through transactions that required selling dollars and U.S. Treasury bonds, while keeping the department’s intervention symbolic to send a supportive signal. Bispensent explained that the department made tens of millions of dollars in profits from supporting the yen, but emphasized that the primary goal is to support Japanese policy, with indications that the Bank of Japan intends to raise interest rates to support the yen, ahead of the bank’s meeting later this week.
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