Bessent Warns BOJ on Yen Volatility

U.S. Treasury Secretary Scott Bessent has urged Bank of Japan Governor Kazuo Ueda to maintain sound monetary policy and prevent excessive yen volatility, according to a statement from the Treasury Department.

Bessent expressed strong support for Japan's efforts to address the yen's undervaluation, which he believes contributes to domestic inflationary pressures.

The two officials met at the G20 finance ministers' and central bank governors' meeting in Asheville, North Carolina, on Sunday. Bessent stressed the importance of proper formulation and communication of monetary policy to anchor inflation expectations and avoid excess exchange rate volatility.

A weak yen has increased import prices and broader inflation, raising the cost of living for Japanese households. The BOJ's decision is now seen as a major factor in determining the future direction of the yen.