Treasury Secretary Bessent appears to endorse yen intervention
EUR/USD — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
UOB | Bearish | 1.1140 |
ABN AMRO | Bullish | 1.1500 |
Bank of America | Bullish | 1.1500 |
All 28 desk targets for EUR/USD
From the original
In a Fox Business inveterview, US Treasury Secretary Scott Bessent said the yen is very undervalued. He said it has substantially overshot equilibrium and that the US views excess volatility as unhealthy. Japan intervened in a big way earlier today but they're going to be fightin
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4 itemsBessent heads to Tokyo pressing Japan on yen weakness and intervention
Lead — The desk interprets US Treasury Secretary Bessent's recent visit to Tokyo as a pivotal moment in the ongoing debate over Japan's monetary policy and currency management. Bessent's preference for Bank of Japan (BOJ) rate hikes over yen intervention highlights the growing concern regarding the impact of Japanese financial flows on US Treasury yields. Per the full note [source], Bessent's advocacy for rate hikes comes amid speculation of a potential BOJ tightening as early as next month, which could significantly influence market dynamics. The desk notes that the current consensus target for USD/JPY reflects a cautious stance amidst these developments.
Yen: Why Bessent backs himself for successful intervention
The desk's thesis is that US Treasury Secretary Scott Bessent's recent intervention in the FX market signals a bullish outlook for the yen, which is considered significantly undervalued. Per the full note by Chris Turner, Bessent's faith in the yen is partly based on the potential for supportive monetary policy shifts in Japan as well as the historical context of successful interventions. Current consensus sees the yen at 160.47, with a broad expectation of revaluation as firms project targets ranging from 145.00 to 161.71 for March 2026 across the market. Watch USD/JPY dynamics closely for any further indications of strength following the intervention, as this could pivot market sentiment dramatically.
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