Yen hangs near 160 amid BOJ rate-hike bets, dollar wobbles
The yen stabilized near 160 against the dollar on Tuesday. US Treasury Secretary Scott Bessent urged the Bank of Japan to raise rates. Currency markets watched renewed Middle East conflict and rising oil prices. Traders anticipate a potential Federal Reserve rate hike in September. Investor attention focuses on upcoming economic data this week.
The Japanese yen hovered near 160 per dollar on Tuesday, following U.S. Treasury Secretary Scott Bessent's plea for the Bank of Japan to raise rates later this month, according to wire material. The dollar wavered as investors monitored Middle East tensions. U.S. President Donald Trump hinted at additional strikes against Iran, triggering a sharp rise in Brent crude prices and Treasury yields.
Bessent, in a CNBC interview, expressed confidence that Japan's government and central bank would take actions to strengthen the yen. Recent joint intervention by the U.S. and Japan provided temporary relief to the yen, but its value has since receded. Analysts suggest a BOJ hike in September is necessary for the yen to move away from the 160 level.
Meanwhile, the U.S. dollar faced a decline after hawkish remarks from Fed Chairman Kevin Warsh, while the euro and British pound showed modest gains.
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