Bessent Sees Japan Inflation Easing as Yen Rebounds to 157 After $36.58 Billion Intervention
Updated
Updated · sahi.com · Aug 4
Bessent Sees Japan Inflation Easing as Yen Rebounds to 157 After $36.58 Billion Intervention
3 articles · Updated · sahi.com · Aug 4
Summary
Japan’s inflation should cool as the yen strengthens and energy costs stabilize, U.S. Treasury Secretary Scott Bessent said after last week’s joint U.S.-Japan currency action.
The yen has recovered to about 157 per dollar from near 164, a rebound Bessent said should reduce import-driven price pressure rather than signal domestic overheating.
Japan’s core CPI rose 1.6% in June from 1.4% in May, still below the Bank of Japan’s 2% target and giving policymakers room to avoid aggressive rate hikes.
Japan is estimated to have spent $36.58 billion in reserves in the July 31 intervention, the first coordinated U.S.-Japan yen-buying operation since 2011.
A steadier yen could also limit spillovers into global markets by reducing pressure on Japan to tighten abruptly or sell U.S. Treasuries to defend its currency.