The Secretary of the US Treasury, Scott Bessent, rejects the rumors regarding a possible US intervention on the foreign exchange market
Treasury Secretary Scott Bessent on Wednesday rejected speculation that the United States could intervene in the foreign exchange market as the Japanese yen is under watch for possible intervention and the US dollar has fallen to multi-year lows.
Dollars PHOTO: Shutterstock
“Absolutely not,” Bessent told CNBC, when asked if the US is intervening in the foreign exchange market or trying to strengthen the yen.
On Tuesday, the dollar index, which measures the U.S. currency against a basket of major currencies, fell 1.3 percent, its biggest daily decline since April, and also hit its lowest level since 2022. Reuters reported last week that the New York branch of the Federal Reserve discussed the dollar-yen exchange rate with dealers, a step often seen as a prelude to intervention, the News writes.
Bessent refused to comment on this information, reiterating only that the US has “a strong dollar policy'. He emphasized that this policy is based on “solid foundations”: reducing the trade deficit and maintaining capital flows to the American economy.
His remarks come a day after President Donald Trump said he was “pleased” with the dollar's current level, even though the dollar has depreciated by more than 10% over the past 12 months.
Trump has accused China and Japan of unfairly devaluing their currencies and suggested investors are eyeing a possible yen intervention.
“It's hard to compete when they devalue”Trump said in Iowa, where he was on a visit dedicated to his economic program.
