The US dollar/yen exchange rate plunged from the ¥160 range to the ¥155 range. Attention is focused on whether remarks by BOJ Policy Board member Takata (高田) and Treasury Secretary Bessent’s comments on Japan’s reflationary policy will change the yen’s direction.
This week, the market was presented with two developments: remarks made by BOJ Policy Board member Takata (高田) at a press conference and comments by US Treasury Secretary Bessent concerning Japan’s reflationary policy. Together, they triggered a sharp move toward yen appreciation. Takata said that “the situation could change in 2026” in discussing the basic framework for monetary policy, and his remarks were reported to include language suggesting the possibility of consecutive rate hikes.
Treasury Secretary Bessent reportedly told Japan that it should end its reflationary policy at a press conference following the G20 Finance Ministers and Central Bank Governors Meeting. His remarks have also been interpreted as conveying that intention during meetings with BOJ Governor Ueda (植田) and Finance Minister Katayama (片山). Following these comments, the US dollar/yen exchange rate was reported to have fallen from the ¥160 range to the ¥155 range at one point during an intraday plunge.
The BOJ’s Monetary Policy Meeting, scheduled for 17–18 September, is said to be an important turning point for the outlook. Market reaction is expected to depend on whether the meeting produces a 0.5% rate hike, signals the possibility of consecutive rate hikes, or ends with an inconclusive outcome. By checking investment-money flows against the data, the meeting is expected to provide a basis for judging whether the yen’s strengthening trend will continue or whether the yen will weaken again.