August 5--According to a CNBC report on August 4, U.S. Treasury Secretary Janet Yellen stated that the Trump administration would “at all costs” support stability in Japan’s currency market, under the pretext of benefiting the U.S. economy.

Photograph: Archives of Hong Kong China News Service

According to Observer Network, he said in an interview with CNBC: “As long as it benefits the U.S. economy and American taxpayers, we will do everything possible to support Japan.”

During the program, Vescent revealed that the United States has joined Japan’s joint intervention to boost the yen, as the yen’s continued weakness could destabilize Asian markets and even trigger competitive currency devaluations. “This situation is very unhealthy.”

He emphasized, “Given trade flows, the size of the economy, and Japan’s contribution to global savings markets, maintaining the stability of the yen is of paramount importance.” “The Japanese government understands this, and we are honored to collaborate with them in implementing relevant policies and contributing to regional stability.”

CNBC noted that this joint intervention is a rare move by the United States to support another major currency, underscoring Washington’s concern that a prolonged weakening of the yen could exacerbate Japanese inflation, put downward pressure on other Asian currencies, and disrupt global markets.

As part of a coordinated effort, the U.S. Treasury sold euros from its foreign-exchange reserves and used the proceeds to purchase Japanese yen. Besant revealed that he has informed European officials that the sale of euros constitutes merely a reallocation of reserve assets.

Bessant said, “In my view, the euro exchange rate is closer to its equilibrium level.” “I will not comment on where the euro should be traded, but the real issue is that the yen is currently severely undervalued, as well as the measures being taken by the Japanese government.”

However, Vescent also emphasized that buying yen can only dampen market volatility in the short term, and Japan must still address the underlying factors driving the yen’s weakness through fundamental policy adjustments. He declined to comment on whether the Bank of Japan should raise interest rates.

Regarding Reuters’ report last week that his “to-do” list included “buying between $5 billion and $10 billion worth of yen,” Bescent joked, “I just wanted to remind those reporters peeking over my shoulder that the symbol for the yen is ‘¥.’”

He also said that he had originally intended to write about things like “having lunch with Iran’s Supreme Leader or playing tennis with President Putin,” but “in the end, I only mentioned buying something worth between 5 and 10 billion yen.”