Bessent Signals BOJ Rate Hike Chance as Yen Rally Gains Momentum

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

Bessent made his comments during the Group of 20 finance leaders' gathering in Asheville, North Carolina, on August 31. He told CNBC that he has information that the market doesn't have and expects the Japanese government and BOJ to take measures leading to a stronger yen.

When asked if this meant raising interest rates, Bessent replied, 'I think the market's pricing that in now.'

The yen gained against the dollar after Bessent's comments, with the dollar standing at 159.75 yen on Monday. This is still close to the 160 mark, which is seen as heightening the chance of yen-buying intervention.