Treasury Secretary Scott Bessent on Wednesday shut down reports that the U.S. could step into the currency market with the Japanese yen on intervention watch and the American dollar hitting multiyear lows.
“Absolutely not,” Bessent told CNBC’s Sara Eisen, responding to a question about if the U.S. is intervening in the currency market or strengthening the yen.
The U.S. dollar index, which tracks the American greenback against a basket of foreign peers, rose 0.4% on Wednesday following Bessent’s comments. The index on Tuesday saw its biggest one-day slide since April and fell to its lowest level since 2022.
The U.S. dollar index, 5-year chart
Reuters reported last week that the New York Federal Reserve had reviewed dollar-to-yen rates with dealers, citing a person familiar with the matter. Such a move is viewed as a precursor to intervention, Reuters reported.
Bessent told CNBC on Tuesday he had no comment on the report besides saying the U.S. has a strong dollar policy.
The “U.S. always has a strong dollar policy, but a strong dollar policy means setting the right fundamentals,” Bessent said.
“If we have sound policies, the money will flow in,” he added. “We are bringing down our trade deficits, so … automatically that should lead to more dollar strength over time.”
Bessent’s comments come a day after President Donald Trump said, “I think it’s great” when asked if he was comfortable with the current value of the dollar. The dollar index has dropped more than 10% compared with 12 months ago.
Trump said he’s seen China and Japan “devalue” their currencies, which he’s found to be unfair. Investors have been monitoring for a potential intervention on the Japanese yen.
“They devalue, because it’s hard to compete when they devalue,” Trump said in Iowa, where he was on a visit focused on his economic record.