Bessent Warns BOJ on Yen Volatility Ahead of Interest Rate Hike Decision

U.S. Treasury Secretary Scott Bessent has urged Bank of Japan Governor Kazuo Ueda to maintain sound monetary policy and prevent excessive volatility in the yen.

The call for stability comes as the BOJ considers a potential interest rate hike at its September 17-18 meeting, which would be the first increase since 2006.

Bessent expressed strong support for Japan's efforts to address the yen's undervaluation and highlighted how the weak currency has contributed to domestic inflationary pressures.

The Treasury Secretary emphasized the importance of proper formulation and communication of monetary policy to anchor inflation expectations and avoid excess exchange rate volatility.