Yen Teeters on 160 as Markets Bet Big on BOJ Rate Hike

The yen held steady near 160 against the US dollar on Tuesday after US Treasury Secretary Scott Bessent hinted at a potential interest rate hike from the Bank of Japan. This comes as markets are pricing in a 73% chance of a BOJ hike later this month.

Bessent said he believed the Japanese government and central bank would take action leading to a stronger yen, but analysts suggest there needs to be a more hawkish BOJ path beyond September for the yen to sustainably move away from 160.

The US dollar was subdued due to rising odds of a hike from the Federal Reserve in September after Fed Chairman Kevin Warsh's hawkish remarks last week. The euro and sterling were steady, while Brent crude futures rose above $91 a barrel.