BOJ Hike Bets Weaken USD as Yen Holds Near Record Lows

The yen has stabilized near 160 per dollar after U.S. Treasury Secretary Scott Bessent's comments put pressure on the Bank of Japan to raise interest rates this month.

Bessent stated that he believes Japan's government and central bank will take action leading to a stronger yen, which has been trading at lows not seen in 40 years.

The BOJ's potential rate hike is already priced in by markets, with a 73% chance of a move later this month. However, analysts warn that a single hike may not be enough to sustainably move the yen away from its current levels.