Bessent Warns BOJ on Yen Volatility Ahead of Key Rate Decision

U.S. Treasury Secretary Scott Bessent 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 met with Ueda on Sunday at the G20 finance ministers' and central bank governors' meeting in Asheville, North Carolina, where he expressed support for Japan's efforts to address the yen's undervaluation.

The weak yen has contributed to domestic inflationary pressures, increasing import prices and broadening inflation, which raises the cost of living for Japanese households.

Bessent stressed the importance of proper formulation and communication of monetary policy to anchor inflation expectations and avoid excess exchange rate volatility.