Bessent Backs Japan's Currency Strengthening Efforts Amid Inflation Fears

US Treasury Secretary Scott Bessent expressed support for Japan's efforts to strengthen its currency, stating that yen weakness contributes to inflationary pressures in Japan.

Bessent met with BOJ Governor Kazuo Ueda on September 1 and noted the importance of sound monetary policymaking and communication to anchor inflation expectations and avoid excessive foreign exchange volatility.

The meeting reinforced market expectations that the Japanese central bank will continue raising rates at its next policy meeting scheduled for September 17-18, pushing the benchmark long-term yield above 3 percent for the first time in 30 years.