{
  "id": 4785301,
  "title": "Asian currencies steady as yen hovers near 160, Bessent backs BOJ hikes",
  "url": "https://urgent.news/2026/09/01/asian-currencies-steady-as-yen-hovers-near-160-bessent-backs-boj-hikes",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-01T04:25:06.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/forex-news/asian-currencies-steady-as-yen-hovers-near-160-bessent-backs-boj-hikes-4883482"
  },
  "original_language": "en",
  "account": "The Japanese yen remained stable near the 160-per-dollar mark on Tuesday, with most other currencies fluctuating within a narrow range. The U.S.-Iran conflict triggered a surge in oil prices above $91 and propelled global bond yields to record levels. The yen's USD/JPY rate stood at 159.81, following a decline from 160 in the prior two sessions. This level has become a focal point for investors, as Japan's intervention efforts in late July yielded only temporary relief. Bessent, a Japanese official, expressed confidence that the government and the Bank of Japan would implement measures to bolster the yen. He suggested that further interest rate hikes would be necessary. The dollar experienced a slight decline on Tuesday, as market participants balanced the growing expectations of U.S. interest rate hikes with Bessent's remarks on Japan's situation. The probability of a Federal Reserve rate increase during the September meeting rose to 74%, up from 34% the previous day, according to Bloomberg swaps pricing. This shift in sentiment led to a considerable increase in expectations for a Fed hike, up from 41% a week earlier. The upcoming nonfarm payrolls report and the release of inflation data will serve as critical indicators ahead of the Fed's decision on September 17. Investors have expressed caution regarding duration, potentially causing the probability of a rate hike to shift either toward zero or 100% depending on the outcome of the economic and inflation data. Bessent's comments at the G20 event tempered some of the hawkish influence generated by Warsh's speech at the Jackson Hole meeting. The recent tensions in the Middle East further heighten uncertainty in the market. The British pound remained relatively stable, with the USD/GBP pair hovering around 1.2750. Meanwhile, China's yuan demonstrated minimal movement, as the private RatingDog China General Manufacturing PMI increased to 51.5 in August from 50.9, surpassing expectations. The USD/CNH and USD/CNY pairs also saw slight gains, reaching 6.72. Despite the positive private survey, the official manufacturing PMI remained below the 50 benchmark, indicating a subdued economic environment. The Indian rupee strengthened, with the USD/INR pair falling to 94.964 as India's economy expanded by 7.8% year-on-year in the April-June quarter, exceeding expectations. The Reserve Bank of India may have intervened to support the rupee, potentially intervening again before Tuesday's market opening. The South Korean won and Singapore dollar also experienced minor gains, with their respective USD/KRW and USD/SGD pairs rising by 0.4% and 0.03%, respectively. Meanwhile, the Australian dollar dipped slightly, while the New Zealand dollar weakened against the U.S. dollar. Looking ahead, central bank decisions on Wednesday will garner significant attention, as the Reserve Bank of New Zealand is expected to increase rates for a second consecutive meeting, while the Bank of Canada is anticipated to maintain its current stance. BOJ Governor Kazuo Ueda's remarks at the G20 and Board Member Takata's speech will also be closely scrutinized for any new indications of a potential Japanese interest rate hike in September.",
  "summary": null,
  "key_points": [
    "Japanese yen stable near 160 per dollar, hovering near key level",
    "Bessent, Japanese official, confident in government's yen measures",
    "Fed rate hike probability rises to 74% as markets react"
  ],
  "editors_take": "Bessent's backing for BOJ interest rate hikes to bolster the yen shifts market expectations, potentially setting the stage for a Japanese policy move and influencing the Federal Reserve's own rate decisions.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}