WASHINGTON DC –
US Treasury Secretary Scott Bessent said the yen is undervalued, making an unusually direct assessment of the currency and signaling that Washington is unwilling to accept excessive weakness.
Speaking in an interview with FOX Business on July 30, Bessent said Japan’s economy was performing well, the prime minister enjoyed strong public support and the government was pursuing robust policies.
“As that recognition spreads, the market should realize that the yen is undervalued, and the currency should strengthen,” he said.
Bessent also said he was not concerned by the sharp rise in the yen and decline in the dollar in financial markets on July 30. He added that the Japanese currency had moved far beyond what could be considered its equilibrium level, indicating that its recent depreciation had gone too far.
It is unusual for a US Treasury secretary to offer such a specific assessment of the yen’s current value. The comments underscored the US government’s position that it would not tolerate excessive weakness in the Japanese currency.
Source: TBS
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