Bessent Predicts Stronger Yen Ahead of Potential BOJ Rate Hike

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

Bessent, who has been calling for BOJ rate hikes, said he thinks the market is pricing in a chance of a rate hike at the next policy meeting on September 17-18.

The yen gained against the dollar after Bessent's comments, with the dollar standing at 159.73 yen on Monday.

Bessent expects BOJ Governor Kazuo Ueda to 'do the right thing' and take action to combat yen declines, which have been blamed in part on the slow pace of rate hikes by the BOJ.