Highlights
- Treasury Secretary Scott Bessent met Bank of Japan Governor Kazuo Ueda at the G20 finance ministers' meeting in Asheville, North Carolina, August 31-September 1.
- Bessent said Japan has likely reached “the conclusion of Abenomics” and should let the policy transition happen organically.
- The yen recently traded near 160 per dollar, recovering from 40-year lows of about 164 hit earlier this summer.
- Traders are pricing an 80-90% probability of a BOJ rate hike in September as inflation runs above the 2% target.
- A rare joint US-Japan currency intervention took place in late July to help stabilize the currency.
US Treasury Secretary Scott Bessent used the G20 finance ministers' meeting in Asheville, North Carolina, to publicly back Japan's efforts to shore up the yen, meeting Bank of Japan Governor Kazuo Ueda on the sidelines. Crypto Banter reported that Bessent, who met Ueda at the G20 gathering on August 30, backed Japan's market and rate steps to address what Treasury called a substantially undervalued yen, noting the cheap currency has been adding to Japan's inflation problem.
What Bessent Said
Bessent told reporters that Japan has likely reached “the conclusion of Abenomics,” the decade-plus era of ultra-loose monetary policy launched under former Prime Minister Shinzo Abe, and advised Tokyo to “let the transition happen organically” rather than force a break. He also called Governor Ueda an “underrated, savvy market operator” and described recent yen fluctuations as “pretty well contained” rather than disorderly — language read by traders as a signal that Washington isn't pushing for aggressive intervention beyond what Japan is already doing on its own.
A Currency Still Recovering
The yen has traded around 160 per dollar in recent sessions, a meaningful recovery from the roughly 164 level — a 40-year low — it touched earlier this summer. That improvement follows a rare joint US-Japan currency intervention in late July aimed at stemming the slide. Traders are now pricing an 80-90% probability that the BOJ raises rates again in September, with inflation running above the central bank's 2% target and wage growth showing enough durability to support tighter policy. Prime Minister Sanae Takaichi has also signaled she intends to reduce government intervention in monetary policy decisions, a shift Bessent has consistently encouraged, having pushed for BOJ independence from political pressure throughout the year.
Why It Matters for Crypto Markets
A firming yen and an increasingly independent, hawkish BOJ carry direct implications for global risk assets, including crypto. Japan has been a major source of the low-cost yen carry trade that has helped fund leveraged positions in equities and digital assets over the past several years; a sustained BOJ tightening cycle raises the cost of unwinding those trades and has historically coincided with bouts of volatility in Bitcoin and altcoins. Bessent's public endorsement of Ueda's approach reduces the odds of disorderly yen moves in the near term, which markets tend to read as incrementally supportive of risk appetite compared with a scenario of unmanaged currency stress.
What to Watch Next
The next major catalyst is the Bank of Japan's September policy meeting, where markets are pricing high odds of a hike. Traders will also be watching whether the yen holds its recent gains against the dollar heading into that decision, and whether Takaichi's government follows through on stepping back from monetary policy influence. Any surprise from the BOJ — either a larger-than-expected hike or a pause — could quickly move both the yen and broader risk sentiment.
FAQ
What did Bessent say about Japan's currency policy?
He backed Japan's market and rate steps to address an undervalued yen, said Japan has likely reached the conclusion of Abenomics, and called for the policy transition to happen organically.
Where and when did Bessent meet Governor Ueda?
They met at the G20 finance ministers' meeting in Asheville, North Carolina, which ran August 31 to September 1, 2026, with Bessent's comments made around August 30.
How much has the yen recovered?
The yen recently traded near 160 per dollar, up from roughly 164 — a 40-year low — hit earlier in the summer, following a joint US-Japan currency intervention in late July.
Why does yen policy matter for crypto markets?
Japan has been a key funding source for the yen carry trade that backs leveraged positions in risk assets; a tightening BOJ raises the cost of those trades and can add volatility to Bitcoin and altcoins.
