Bessent says he believes Japan will take action leading to stronger yen

U.S. Treasury Secretary Scott Bessent expressed confidence on Monday that Japan and its central bank, the Bank of Japan (BOJ), will take steps resulting in a stronger Japanese yen. He claimed to possess knowledge not currently available to the market, and confidently stated his belief in the actions that would lead to a stronger yen.

When queried about potential interest rate hikes, Bessent noted that the market had already factored in such a possibility. The yen experienced an increase against the dollar following Bessent's remarks, as the BOJ's move was expected to lift the currency's value. The dollar was trading at 159.68 yen, down 0.23% from the previous session.

During a Group of 20 finance leaders’ gathering in Asheville, North Carolina, where BOJ Governor Kazuo Ueda is present, Bessent mentioned a possible meeting with Ueda.