Yen-buying momentum is strengthening. US Treasury Secretary Scott Bessent's comments are influencing market views, and with the US FOMC and the Bank of Japan's policy meeting scheduled for this week, expectations of multiple rate hikes could spread, according to reports.
Yen-buying momentum is strengthening in the foreign exchange market. One factor cited is US Treasury Secretary Scott Bessent's statement that he “possesses asymmetric information unavailable to the market.” With the US Federal Open Market Committee (FOMC) and the Bank of Japan's Monetary Policy Meeting scheduled for this week, market participants continue to assess the outlook for the exchange rate. We asked 14 market participants about their outlook for the exchange rate and their interpretation of Bessent's comments.
Market attention is focused on a possible BOJ rate hike, with discussions over the BOJ's policy rate and the votes of its Policy Board members expected to be key points. The BOJ is scheduled to hold its Monetary Policy Meeting on 17–18, and all respondents are closely watching interest-rate developments.