US Treasury Secretary Scott Bessent warned currency traders betting against the Japanese yen during a speech at Southern Methodist University on September 9, 2026. He stated that he now holds a superior understanding of the Bank of Japan's future monetary policy decisions.
This stance follows a historic joint currency intervention on July 31, 2026, the first of its kind since 1998. During this operation, the US utilized Goldman Sachs and Morgan Stanley to sell euros and purchase yen to stabilize the currency.
Following the joint action, Japan spent approximately $98.7 billion to support the yen against the dollar, marking a record level of intervention for the country. Despite these efforts, the yen has faced continued pressure from global market forces.
Bessent has maintained coordination with Japanese Finance Minister Satsuki Katayama regarding monetary policy. The Treasury secretary's comments suggest that traders shorting the yen are effectively betting against the combined resources of the US and Japanese governments.
The global foreign exchange market sees a daily trading volume of roughly $7.5 trillion, according to the Bank for International Settlements. Analysts note that even record-breaking interventions can be absorbed by the scale of this liquidity.
