US Treasury defends yen intervention to mitigate risks to US borrowing costs

Treasury Secretary Scott Bessent justified US intervention to support the Japanese yen, citing the risk that extreme currency volatility could destabilize the US Treasury market. As Japan is the largest foreign holder of US debt, the intervention aims to prevent spillover effects on American borrowing costs. The effectiveness of the $96.4 billion operation remains in question as the yen has resumed its downward trend.