Yen Steadies Near 160 as BOJ Hike Bets Intensify

The yen has steadied near the 160-per-dollar level after U.S. Treasury Secretary Scott Bessent hinted at potential rate hikes by the Bank of Japan this month.

Bessent said he believed the Japanese government and central bank would take action leading to a stronger yen, but markets are pricing in a 73% chance of a BOJ hike, which may not be enough to sustainably move the currency away from 160.

The U.S. dollar was subdued, backing away from Friday's gains as investors contended with rising odds of a Federal Reserve rate hike in September, following hawkish remarks from Fed Chairman Kevin Warsh.