Bessent's Notepad Leaked the Yen Plot Before Tokyo Did 🗒️

U.S. Treasury Secretary Scott Bessent confirmed on Tuesday that Washington purchased Japanese yen for the first time since 1998, after a photographer at Camp David captured his notepad displaying the phrase "Buy Japanese Yen (JPY) $5-10 bil." Bessent told CNBC the intervention was triggered by the yen falling to its weakest level since 1986, and that the move was coordinated with Japan's Ministry of Finance. Japan's Finance Minister Satsuki Katayama said on Monday that Tokyo purchased yen "in coordination with the U.S. Department of the Treasury" on Friday and added that Japan "will not hesitate to conduct further joint intervention." Following her statement, the yen rallied more than 1% to ¥155.20 per dollar, its strongest level since early May.

The intervention framework itself dates to a joint statement signed by both governments last September, which committed them to act together if the yen moved in a disorderly manner. What is new is the scale. The last U.S. yen purchase, on June 17, 1998, totaled just $833 million according to New York Fed records, meaning Bessent's noted range of $5 billion to $10 billion points to an outlay roughly six to 12 times larger. Japan's precise spending has not been disclosed; market estimates near $59 billion are derived from central bank cash-flow analysis. Tokyo is scheduled to publish official intervention figures on August 31.

Bessent dismissed the notepad leak itself with a quip, telling CNBC "I just wanted to make sure that all the reporters looking over my shoulder also knew the symbol. JP for the Japanese yen." He was more serious on the rationale, framing the purchase as part of a sustained policy effort rather than a one-time fix. "This is more than just a market intervention… through our conversations with them, we believe that they are going to continue to put the right policies in place that will lead the yen to get back to more of a normal equilibrium price," Bessent said.

The Treasury Secretary also tied the move to historical precedent, attributing part of the 1997 Asian Financial Crisis to yen weakness that dragged neighboring currencies lower. He pointed to recent volatility in South Korea's won as evidence that regional stability remains at stake. "Part of it was triggered by an overly weak yen. So I think a stable yen is not only important for the U.S. but it's very important for the entire region, because if the yen were to weaken substantially, then the other currencies would follow it," Bessent said.

Bessent closed by drawing a line between market signaling and structural policy, arguing that currency purchases can shift sentiment but only fiscal and monetary decisions can restore equilibrium. "I think here we can give market signals. But at the end of the day, it's going to be policy and fundamentals. And the US decided to join because we are very optimistic on their policy pa