Bessent Predicts Japan Rate Hike Amid Yen Weakness

The Japanese yen has been hovering near a politically sensitive threshold, causing investors to weigh whether Tokyo's next policy meeting could bring meaningful change.

US Treasury Secretary Scott Bessent expects actions by the Japanese government and the Bank of Japan that will help strengthen the yen. His remarks reinforced market expectations that Japan's central bank could raise its key interest rate as early as September 17-18.

Bessent said he had reason to believe that Tokyo and the Bank of Japan would take steps to support the national currency, implying a potential interest rate hike. 'I think the market has already priced it in,' he added.