**Global Markets: Dollar Rebounds as US Rejects Yen Intervention** **Executive Summary** The US Treasury has firmly dismissed speculation of joint currency intervention to support the Japanese yen. Treasury Secretary Scott Bessent’s explicit rejection of market interference catalyzed a sharp recovery in the greenback, reversing its slide to four-year lows. **Key Developments** * **Bessent’s Stance:** In a decisive CNBC interview, Secretary Bessent stated the US is **"absolutely not"** intervening in the dollar-yen market. He clarified that the administration’s "strong dollar policy" focuses on economic fundamentals rather than exchange rate manipulation. * **Yen Weakens:** The comments effectively removed the immediate threat of coordinated selling, causing the Japanese yen to surrender recent gains. * **Fed Decision:** The Federal Reserve held interest rates steady on Wednesday, further stabilizing the currency outlook as Chair Powell signaled a pause on immediate rate cuts. **Market Reaction** * **Dollar Index (DXY):** Surged approximately **0.5%** to trade near **96.40**, bouncing off a multi-year low of 95.86 hit earlier in the week. * **USD/JPY:** The pair rallied over **1.1%**, reclaiming the **153.80** level as traders unwound bets on government intervention. * **Euro (EUR/USD):** Slid roughly **1.1%** to **1.1910**, retreating from highs seen earlier in the session. * **Commodities:** Despite the stronger dollar, Gold (XAU/USD) remained resilient, trading above **$5,300/oz** on sustained safe-haven demand. **Context & Outlook** The volatility follows President Trump’s earlier remarks brushing off the dollar’s weakness, which markets initially interpreted as a green light for depreciation. Bessent’s clarification has temporarily calmed fears of a policy shift, refocusing investor attention on the divergence between the US and Japanese economies. With the Fed holding firm, the path of least resistance for the dollar appears steadier, though fiscal concerns and trade dynamics remain long-term headwinds.