US Treasury chief says yen weakness remains orderly, expects BOJ action

Scott Bessent, US Treasury Secretary, has sought to downplay concerns over recent yen depreciation, describing the currency's movements as remaining "pretty contained" and within orderly parameters. His comments suggest the US administration is monitoring but not alarmed by shifts in the Japanese currency, which has come under pressure in recent months.

Bessent indicated confidence in the leadership of the Bank of Japan, particularly Governor Kazuo Ueda, to navigate current economic conditions with appropriate policy decisions. The Treasury chief's remarks reflect broader coordination between US and Japanese economic authorities as they manage cross-border currency dynamics.

The comments come at a time of heightened scrutiny over currency movements in major economies. With Prime Minister Sanae Takaichi's administration backing BOJ Governor Ueda, Bessent's statement underscores expectations that Japan's monetary policymakers will take necessary steps to address economic challenges while maintaining stable market conditions.

Currency volatility remains a key concern for policymakers across Asia and beyond, as exchange rate fluctuations can impact export competitiveness and capital flows. The Treasury Secretary's characterisation of the yen's recent performance as orderly may ease some investor concerns about disruptive currency movements.