Bessent Is Buying Yen In Support Of US Bonds?
The US Treasury bought Japanese yen last Friday and again Monday morning in its first coordinated intervention in the currency since 2011, following Japan's earthquake and tsunami. It is only the third such move since 1998. Treasury Secretary Scott Bessent confirmed the action: "Friday's coordinated foreign exchange actions countered disorderly yen movements," and pledged, "we will not hesitate to participate in further joint intervention." While the trades are small, the message is clear. The US and Japan will no longer tolerate further depreciation of the yen versus the dollar. Before the…
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