Bessent Sees Stronger Yen Ahead as BOJ Rate Hike Looms

U.S. Treasury Secretary Scott Bessent believes Japan's government and central bank will take action to strengthen the yen, increasing the likelihood of a Bank of Japan (BOJ) interest rate hike in September.

In an interview with CNBC during the Group of 20 finance leaders' gathering in Asheville, North Carolina, Bessent stated that he has information not available to the market and is confident that the Japanese government and BOJ will make moves leading to a stronger yen.

Bessent also acknowledged that his comments reinforce market expectations for a rate hike at the BOJ's next policy meeting on September 17-18. The dollar currently stands at 159.73 yen, close to the 160 mark that indicates an increased chance of yen-buying intervention.