Bessent's Yen Intervention Hint Fuels BOJ Hike Speculation

US Treasury Secretary Scott Bessent sparked fresh speculation about Japan's interest rate outlook when he implied that Japanese authorities may be preparing further measures to counter persistent yen weakness.

The comments from Bessent followed media reports suggesting the Bank of Japan (BOJ) may raise rates faster than its current pace, with a September hike potentially opening the door to another by year-end.

Markets now price around a 70% chance of a 25bp hike in September and a second move by the December meeting at roughly 75%, according to Japan's OIS curve.