Treasury Secretary Bessent stated that the US contribution to the coordinated currency intervention with Japan, aimed at bolstering the yen, was "trivial" in scale, while still serving American interests. During a House Financial Services Committee hearing on Tuesday, Bessent explained that "a stronger yen benefits US exports, and yen appreciation means the Japanese government doesn't need to sell US assets to finance its currency intervention."

On July 31st, following the yen's slide to a 40-year low against the dollar, the US Treasury joined Japan in purchasing yen. Japan deployed record-breaking funds in this buying spree, a move that involved selling dollars and likely included the disposal of US Treasuries, of which Japan is the largest foreign holder. Bessent told the committee that the US deployed a "trivial" amount "to send a signal of support for Japanese policy."

Calculations by Treasury watchers indicate the department used less than $1 billion in the yen intervention. This pales in comparison to the record $96.4 billion Japan spent from late July through the end of August. Despite stating that profit was "not the goal," Bessent acknowledged the US Treasury netted "tens of millions of dollars" from the operations.

In recent weeks, Bessent has also hinted at a desire to see the Bank of Japan bolster the yen through interest rate hikes, noting that his understanding of Japanese monetary policy influenced the decision to intervene. The Bank of Japan is scheduled to hold its policy meeting later this week.