US Treasury official Scott Bessent warns of yen and won weakness

U.S. Treasury Undersecretary Scott Bessent told reporters that a continued decline in the Japanese yen could trigger broader currency weakness across Asia, including the South Korean won. He said that an overly weak yen may encourage competitive devaluations, which would be harmful to the region’s economies.

Following his remarks, the won rose against the dollar, reaching about 1,424 won per dollar, while the yen remained under pressure. Bessent also noted that Japan’s large holdings of U.S. Treasury bonds could become a factor if Tokyo were to sell bonds to fund yen‑buying interventions, potentially affecting U.S. bond markets and long‑term interest rates. The comments have been interpreted as implicit U.S. support for Korean market‑stabilisation measures and have heightened attention on coordinated currency‑defence actions in the region.