Secretary of the Treasury Scott Bessant On Wednesday, reports that the U.S. currency market will step into the foreign exchange market closed JPY under intervention control and American dollar hit multi-year lows.
“Absolutely not,” Bessent told CNBC’s Sarah Eisen, when asked if the U.S. was intervening in currency markets or strengthening the yen.
The US dollar indexThe dollar, which tracks the U.S. currency against a basket of foreign peers, traded down 1.3% on Tuesday. the largest one-day slide since April. The dollar index also fell during the session to its lowest level since 2022, but marked high on Wednesday afternoon trading.
US Dollar Index, 5 Year Chart
Reuters reported Last week, the New York Federal Reserve discussed dollar-to-yen rates with dealers, citing a person familiar with the matter. Such a move is seen as a prerequisite for intervention, Reuters reported.
Bessent told CNBC on Tuesday that he had no comment on the report, other than to say that the U.S. has a strong dollar policy.
“The U.S. always has a strong dollar policy, but a strong dollar policy means putting the right fundamentals in place,” Bessen said.
“If we have the right policies, money will flow,” he added. “We’re reducing our trade deficit, so … automatically that should lead to a stronger dollar over time.”
Bessen’s comments come a day after the President’s Donald Trump When asked if the current value of the dollar is comfortable, he replied: “I think it’s great.” There is a dollar index fell down More than 10% compared to 12 months ago.
Trump said he had seen China and Japan “devalue” their currencies, which he said was unfair. Investors were watching for possible intervention in the Japanese yen.
“They’re depreciating because it’s hard to compete when they’re depreciating,” Trump said during a trip to Iowa that focused on his economic record.