Bessent Presses BOJ to Raise Rates as Yen Continues to Plummet

U.S. Treasury Secretary Bessent is putting pressure on the Bank of Japan to raise interest rates, which he believes will drive up the value of the yen.

Bessent stated that 'disorderly yen exchange rate fluctuations may trigger financial market turmoil and drive up borrowing costs for U.S. households and enterprises.'

He pointed out that the Bank of Japan's delay in raising interest rates is the main cause of the yen's depreciation, and that he is confident the Japanese government and central bank will take measures to appreciate the yen.

The joint intervention between the US and Japan was launched at the end of July, with the goal of buying up yen and stabilizing the currency.