Why is US buying Yen? Scott Bessent vows treasury ‘will not hesitate’ again | Explained
The U.S. Treasury plans to buy between $5 billion and $10 billion in Japanese yen to support Japan's economy, as Treasury Secretary Scott Bessent confirmed at a recent cabinet meeting. The yen has weakened significantly, dropping to its lowest value in nearly 40 years, largely due to Japan's high energy import costs and low interest rates. This intervention aims to stabilize the yen and mitigate rising U.S. borrowing costs linked to Japan's sale of U.S. government bonds.