Bessent's Yen Bet Hits Paydirt as BOJ Rate Hike Looms

Treasury Secretary Scott Bessent's bet on the yen is paying off for now. The Japanese currency has touched an almost seven-month high against the U.S. dollar in Asia, a sharp turnaround from July when the U.S. and Japan jointly intervened in the foreign-exchange market to curb the yen's slide.

The rally is driven by mounting expectations that the Bank of Japan will raise interest rates at its upcoming policy meeting next week. Investors are also weighing the possibility that officials could signal a speedier pace of tightening, after one rate-setter said inflation was at risk of running ahead of targets.