Yen Falters at 160 Amid Bessent's Rate Hike Warning

The yen held steady near the 160-per-dollar level on Tuesday after US Treasury Secretary Scott Bessent urged the Bank of Japan to raise interest rates in September.

Bessent's comments came as markets were already pricing in a 73% chance of a BOJ hike this month, but analysts say there needs to be a more significant follow-through from the central bank for the yen to move sustainably away from 160.

The US dollar was subdued on Tuesday, backing away from its gains last week as investors contended with rising odds of a Federal Reserve rate hike in September after Fed Chairman Kevin Warsh's hawkish remarks at the Jackson Hole symposium.