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The Japan Times
U.S. Treasury chief’s ‘whatever-it-takes’ vow to help the yen masks limited firepower
U.S. Treasury Secretary Scott Bessent's declaration of unlimited support for the yen is being met with skepticism as observers note that the U.S. has limited resources to effect such changes. Following a recent coordinated intervention that briefly boosted the yen, the currency has since dropped significantly, raising concerns about the effectiveness of further measures. Market participants are wary that while the statement of support is strong, the actual ability to stabilize the yen may not exist, highlighting a gap between intention and capability.
MonitorConfidence: MediumShort term horizon
Published 11 Aug 2026, 06:45 UTC1 min read
Visit original article ↗Lead image — The Japan Times
Summary
TL;DR
- Scott Bessent promises to support the yen with 'whatever it takes.'
- The yen fell over 1% after a brief rally from previous interventions.
- Market experts doubt the effectiveness of the U.S. support pledge.
- The current fall in yen value raises concerns over economic stability.
- The recent intervention marks the first coordinated effort since 1998.
Interesting facts
- The yen's drop has wiped out half of the gains from the July 31 intervention.
- This is the first coordinated U.S.-Japan currency intervention in 25 years.