Japan and US Agree on Yen Stability as BOJ Rate Hike Speculation Grows

Japan's Finance Minister Satsuki Katayama said that joint foreign-exchange intervention with the US helped stabilize the yen. This comes after a rare joint market intervention in July to support the yen, which has come under renewed pressure since then.

The yen fell to its weakest level since the joint intervention after Federal Reserve Chair Kevin Warsh signaled a hawkish stance last week. Speculation is growing that the BOJ could raise its benchmark rate again at its September meeting, driven by yen weakness and comments from US Treasury Secretary Scott Bessent.

Katayama denied reports that she discussed further Bank of Japan rate hikes with Bessent, leaving the outlook for additional BOJ tightening uncertain. However, Katayama did confirm that she and Bessent agreed on the need for orderly moves in the yen to maintain global financial market stability.