Bessent Predicts BOJ Rate Hike as Japan Aims to Strengthen Yen

U.S. Treasury Secretary Scott Bessent is predicting that Japan's government and central bank will take action to strengthen the yen, which could lead to a Bank of Japan interest rate hike in September.

Bessent told CNBC during a Group of 20 finance leaders' gathering in Asheville, North Carolina, that he has information that 'the market doesn't have,' and believes the BOJ will do what's necessary to combat yen declines.

When asked if this meant raising interest rates, Bessent replied, 'I think the market's pricing that in now.'

The yen gained against the dollar after Bessent's comments, which reinforced dominant market expectations for a September rate hike.