Bessent Stands Behind Yellen's Unspoken Yen Guarantee

Treasury Secretary Scott Bessent is confident about his predictions for the yen's trajectory. He claims to know what the Bank of Japan will do, and says anyone who wants to bet against a sustained yen rally should try him.

Bessent's bravado aside, he may be onto something. The Bank of Japan is widely expected to raise interest rates this week, but it might not be the most decisive factor in determining the yen's trajectory.

The key message that American muscle stands behind the yen - that Japan is not alone for now - could be crucial in shaping the currency's path.