Bessent Predicts Japan Will Boost Yen as BOJ Rate Hike Looms

U.S. Treasury Secretary Scott Bessent believes Japan's government and central bank will take action to boost the yen, increasing the likelihood of a Bank of Japan (BOJ) interest rate hike in September.

Bessent made his comments during a Group of 20 finance leaders' gathering in Asheville, North Carolina. He stated that he has information not available to the market and expects BOJ Governor Kazuo Ueda 'to do the right thing' on monetary policy.

Bessent's remarks follow a previous statement where he said he would meet Ueda on the sidelines of the G20 meetings. Sources suggest the BOJ will raise rates at its next policy meeting on September 17-18 and may hike more aggressively than the current pace.

The yen has gained against the dollar since Bessent's comments, with the dollar standing at 159.73 yen on Monday. This is close to the 160 mark that signals a higher chance of yen-buying intervention.