The U.S. Treasury Secretary warned that disorderly fluctuations of the yen could lead to forced closures of financial positions, affecting global markets and borrowing costs for Americans.

Scott Bessent, the American Secretary of the Treasury, issued a warning regarding the risks posed by the disorderly movements of the yen, which could lead to forced closures of certain financial positions and destabilization of global markets.

These statements were made in a letter dated August 27, in response to Senator Elizabeth Warren's questions about the joint currency intervention by the U.S. and Japan.

On July 31, the two countries intervened to buy yen, an action aimed at stopping the depreciation of the Japanese currency.

Although the yen initially appreciated, it began to lose ground again, approaching 160 yen to the dollar, a threshold that could trigger a new intervention.

Bessent explained that the intervention was carried out by changing the assets in the Exchange Stabilization Fund (ESF), comparing it to the measures taken to support Argentina.

The ESF is a reserve fund managed by the U.S. Treasury, intended to stabilize currency and financial markets.