US Treasury Secretary Janet Yellen addressed the recent significant fluctuations in the value of the yen, refraining from confirming whether Japan had intervened to support its currency.

Yellen, speaking to reporters in Mesa, Arizona, described such assertions as “rumors.”

While acknowledging the yen’s notable movement, she emphasized the expectation for interventions to be infrequent and conducted through consultation.

Japanese authorities were reportedly active in the market twice over the past week, responding to factors such as the yen weakening beyond a significant threshold against the dollar and comments from Federal Reserve Chair Jerome Powell, Bloomberg reported.

Yellen’s stance on Japanese intervention has varied, reflecting a commitment to market-driven exchange rates while acknowledging the potential role of intervention in managing volatility.

During her visit to Arizona, Yellen also discussed the Biden administration’s economic policies and highlighted the importance of upholding democracy for economic stability during her speech in Sedona the day before.

Written by B.C. Begley