US Treasury Secretary Bessent signalled continuity on Abenomics; the yen rallied to below 158 per dollar for the first time since early August.
What moved
US Treasury Secretary Bessent signalled continuity on Abenomics; the yen rallied to below 158 per dollar for the first time since early August.
The market transmission
Bessent's comments reassure the market that US policy will not abruptly reverse the yield-suppression measures Japan has relied on to keep the yen weak. A weaker yen is the cornerstone of Abenomics, and signals of policy continuity lift it because they reduce the risk of a sharp repricing in US real rates that would force the BoJ's hand into tightening. The move reflects positioning relief rather than a fundamental shift in the carry-trade or duration structure.
What would change this
The yen is volatile on near-term positioning and commentary; a single Treasury comment is not a durable shift in the carry. Real rates and the Fed's path remain the structural driver. Bessent's reassurance is meaningful only if it holds through the data calendar.
Directional leans
USDJPY ▼ moderate