Treasury’s Bessent: Yen Weakness Risks Broader Asian FX Depreciation

US Treasury Secretary Scott Bessent warned that the persistent weakness of the Japanese yen is now a significant driver of Japan’s inflation problem. He noted that many Asian currencies have begun to track the yen more closely, explicitly pointing to the South Korean won and the Chinese yuan.

According to Bloomberg, Bessent said this dynamic raises the risk of a broader depreciation across the region, as a weaker yen pulls other currencies lower. His remarks underscore growing concern among US officials that yen-driven competitive devaluations could spill over.

• Yen weakness contributing to Japan’s inflation
• Asian currencies increasingly tracking yen, especially won and yuan
• Risk of wider depreciation across Asia highlighted