Bessent Signals Stronger Yen Ahead for Japan
US Treasury Secretary Scott Bessent believes the Japanese government and Bank of Japan (BOJ) will take steps to strengthen the yen. He made this statement during an interview with CNBC on September 31, in which he was asked about joint intervention by the US and Japanese governments in the foreign exchange market.
Bessent responded that 'all we can do is send signals,' adding that he has information not available to the market. When pressed for a specific action, he stated that 'I believe the Japanese government and the Bank of Japan will take steps that will lead to a stronger yen.'
The remarks are seen as an indication that the BOJ may increase interest rates next month, following joint intervention in the foreign exchange market by the US and Japanese governments on August 31. At that time, the yen's value fell to around 164 per dollar, the lowest level in 40 years.
Reuters reported earlier that the Bank of Japan plans to raise interest rates at its upcoming monetary policy meeting scheduled for September 17-18, and may accelerate the pace of hikes beyond twice a year. Bessent is expected to attend the G20 finance ministers' meeting and meet with Japanese Finance Minister Katayama Satsuki and BOJ Governor Kazuo Ueda.