A rally in the Japanese currency has stalled following remarks from US Treasury Secretary Scott Bessent. He said the administration has a strong dollar policy, tamping down speculation of currency intervention.
The yen had been growing stronger over expectations that Japan and the US would conduct a joint market intervention. US President Donald Trump only heightened the speculation on Tuesday after indicating he would tolerate a weak dollar. That sent the Japanese currency to the 152 level.
But on Wednesday, Bessent put the brakes on the rally.
He was questioned in an interview with CNBC about the president's stance. The treasury secretary said that the US "always has a strong dollar policy."
When asked if the United States is intervening in the currency market right now, Bessent said, "absolutely not."
Market sources believe the treasury secretary wanted to soften the impact of Trump's remarks. A further weakening of the dollar could see traders dump the currency as well as US bonds.
The yen at one point weakened to the 154 level against the dollar. It is currently trading in the lower-to-mid 153 range.
Meanwhile, uncertainty surrounding US policy is proving good for gold, which traders have seen as a relatively safe asset.
New York gold futures topped 5,500 dollars an ounce on Wednesday, an all-time high.

Quiz 1:
What prompted the stalling of the rally in the Japanese currency?
A. Expectations of a joint market intervention between Japan and the US.
B. Remarks from US Treasury Secretary Scott Bessent indicating a strong dollar policy.
C. A significant strengthening of the US dollar against the yen.
D. Traders dumping US bonds due to a weakening dollar.

Quiz 2:
What was the yen trading at when it reached its strongest level, according to the article?
A. 154 level
B. 153 level
C. 152 level
D. 5,500 dollars

Quiz 3:
Which asset has benefitted from the uncertainty surrounding US policy?
A. Gold
B. US Bonds
C. Japanese Yen
D. Japanese Stocks

[Answer block]
Answers:
Quiz 1: B
Quiz 2: C
Quiz 3: A