BOJ Governor and Finance Minister Head to G20 Amid Yen Worries

Japan's finance minister and central bank governor are set to attend the G20 gathering in Asheville, North Carolina next week. The meeting will focus on global economic policies, including the impact of the Middle East war and US calls for fresh sanctions against Iran.

Japanese Finance Minister Satsuki Katayama said she hopes to contribute to discussions about the global economy, while BOJ Governor Kazuo Ueda is expected to meet with US Treasury Secretary Scott Bessent. The coordinated Japan-US currency intervention last month aimed to prop up the sagging yen, which has since slipped back towards 160 per dollar.

Katayama emphasized that the joint statement with Bessent on the intervention was 'a very strong one and still lives', suggesting that the administration's efforts to boost investment and strengthen Japan's growth potential will help enhance the yen's credibility by boosting its competitiveness.

Markets are pricing in an 80% to 90% chance of a rate hike at the BOJ's next meeting in September, following recent hawkish comments from the central bank. BOJ Deputy Governor Ryozo Himino said that timely rate hikes will be examined, including at the next policy meeting.