U.S. joined Japan's currency intervention for stability of Asia: Bessent

WASHINGTON - The United States sees the substantial undervaluation of the Japanese yen as a serious risk to economic stability in Asia, Treasury Secretary Scott Bessent said Tuesday, citing it as a major reason why Washington joined Tokyo in a recent currency intervention.

During a CNBC interview, Bessent said he believes the Asian financial crisis of the late 1990s was in part a result of an "overly weak yen." He said, "So I think a stable yen is not only important for the U.S., but very important for the entire region, because if the yen were to weaken substantially, then the other currencies would follow it."