Bessent Sees Contained Yen Moves Ahead of BoJ Rate Hike Decision
The Japanese Yen has seen contained moves recently, according to US Treasury Secretary Scott Bessent. He described recent yen movements as 'pretty well-contained' and not disorderly, reducing immediate expectations of another joint U.S.-Japanese intervention.
Bessent's comments come ahead of the Bank of Japan's (BoJ) September 17-18 meeting, where markets are watching for a possible rate hike. He expects BoJ Governor Kazuo Ueda to 'do the right thing' on policy, suggesting that Japan has already overcome deflation and is shifting toward a new economic era.
The resilience of Japan's macro data supports the narrative that Japan has exited deflation, with strong indicators in housing and commerce. The country's industrial production was flat month-over-month in July, while shipments rose 2.2% and inventories increased by 0.5%. The inventory ratio fell 1.7%.