Yen Surges as BOJ Rate Hike Expectations Rise

The Japanese yen surged in New York trading on Thursday, prompted by expectations that the Bank of Japan (BOJ) will raise interest rates in mid-September.

Multiple market participants reported that they believe the Japanese government did not intervene in the foreign exchange market during this time, as speculation grows about the narrowing interest rate differential between Japan and the United States.

The latest development comes after U.S. Treasury Secretary Scott Bessent called for a review of accommodative monetary conditions at a press conference following a two-day meeting of the Group of 20 finance ministers and central bank governors through Tuesday.