BOJ Rate Hike Bets Lift Yen as US Pressure Mounts
The Japanese yen has steadied near its recent low of 160 per dollar as US Treasury Secretary Scott Bessent increases pressure on the Bank of Japan to raise interest rates later this month.
Bessent, speaking during a Group of 20 finance leaders' gathering, stated that he believes the Japanese government and central bank will take action leading to a stronger yen. The BOJ has been under pressure from investors to hike rates and boost the currency's value.
Market expectations for a September rate hike by the Bank of Japan have risen to 73%, but analysts suggest more significant actions are needed for the yen to sustainably move away from its current level.
In other developments, US President Donald Trump has threatened further strikes against Iran following renewed attacks in the Middle East. This has lifted oil prices and Treasury yields, influencing currency market sentiment.