Bessent Predicts Japanese Action to Boost Yen Ahead of Potential BOJ Rate Hike

U.S. Treasury Secretary Scott Bessent has signaled that Japan's government and central bank will take action to boost the yen, potentially leading to a Bank of Japan interest rate hike in September.

Bessent made these comments during a Group of 20 finance leaders' gathering in Asheville, North Carolina, where he met with BOJ Governor Kazuo Ueda and Japanese Finance Minister Satsuki Katayama.

In an interview with CNBC, Bessent stated that he believes the market doesn't have the information he does, and that Japan's government and central bank will take actions leading to a stronger yen. When asked if this means 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 of a BOJ rate hike at its next policy meeting on September 17-18.