Bessent Presses Japan for Rate Hike Amid Yen Slide

US Treasury Secretary Scott Bessent met with Japan's top economic policymakers in Asheville, North Carolina, to discuss the yen's slide. The meetings took place ahead of a two-day meeting of Group of 20 finance ministers and central bank governors that began on August 31st.

Bessent pressed for higher interest rates from the Bank of Japan, citing remarks by Erin Brown, US Treasury under secretary for international affairs. Bessent believes the Japanese government and Bank of Japan would take steps leading to a stronger yen.

Japan's Finance Ministry spent a record 15.4 trillion yen (about 132 trillion won) over the past month to defend the currency, but the support did not last long. The yen weakened past the psychologically significant 160 level against the dollar on August 31st.