Bessent Signals BOJ Rate Hike Chance as Japan Aims for Stronger Yen

U.S. Treasury Secretary Scott Bessent has stated that he expects Japan's government and central bank to take action to boost the yen, which could lead to a Bank of Japan interest rate hike in September.

Bessent made these comments during a Group of 20 finance leaders' gathering in Asheville, North Carolina, where he also met with BOJ Governor Kazuo Ueda on the sidelines.

'I have information that the market doesn't have, and it's my belief that the Japanese government and the BOJ will do the things that will lead to a stronger yen,' Bessent said.

The yen has been declining against the dollar, and Bessent's comments reinforced dominant market expectations of a rate hike at the next policy meeting on September 17-18. The dollar stood at 159.73 yen on Monday, close to the 160 mark that signals heightened chances of yen-buying intervention.