When Washington joined Tokyo in the first joint intervention to boost the Japanese yen in nearly three decades, Scott Bessent was at the helm of the US effort. The move stunned investors by selling euros to buy yen, a departure from typical dollar-based trades. Bessent, a former Soros trader known for betting against the pound in 1992, has taken an increasingly activist stance at the Treasury. The intervention lifted the yen from almost ¥164 to the dollar to around ¥157, though analysts warned it could reverse quickly.

Economists noted Bessent leading an official attempt to support a currency against interest rate fundamentals, with Japan's 1% policy rate lagging inflation. The US acted partly to prevent Japan from selling Treasuries, of which it is the largest official owner. Investors detected a desire to stave off pressure on US bond markets.

Critics called the irony striking – a former Soros protégé attempting lasting FX intervention. Kenneth Rogoff likened it to Bessent's Argentina playbook, though he cautioned it was just a temporary fix. Analysts emphasized that real solutions depend on the Bank of Japan and Japan's fiscal policy.

The risk remains that failed intervention could spill over into long-term Treasuries. Daleep Singh warned of significant consequences if speculators resume targeting the yen. For now, Bessent's approach marks a return to FX activism, with the US willing to act against trades pushing against its interests.