Bessent Sees Contained Yen Moves Ahead of BOJ Policy Meeting
US Treasury Secretary Scott Bessent stated that recent yen movements have been 'pretty well contained', indicating that Japan's currency decline is not seen as disorderly. This assessment comes after a joint intervention by the US and Japan in July, which aimed to stabilize the yen.
Bessent expressed his expectation that Bank of Japan Governor Kazuo Ueda will take necessary actions on monetary policy with the backing of Prime Minister Sanae Takaichi. When asked about consecutive interest rate hikes, Bessent replied, 'I'm not going to tell them what to do.'
He also mentioned that he plans to meet Ueda at the G20 finance leaders' gathering in Asheville, North Carolina. Bessent has known Ueda for 15 years and considers him a great economist who is underrated on markets.
Bessent's comments contrast with his previous statement describing the July intervention as aimed at countering 'disorderly' moves in the currency. Japan's weak yen has been a concern, pushing up import prices and broader inflation, which some attribute to the slow pace of BOJ rate hikes.