In an interview with CNBC, U.S. Treasury Secretary Bessent said the Japanese government and the Bank of Japan could take measures that would strengthen the yen. Following the coordinated intervention at the end of July, pressure on the BOJ to raise rates is intensifying.
In an interview with CNBC, U.S. Treasury Secretary Bessent said that the Japanese government and the Bank of Japan would take measures to strengthen the yen amid the yen's continued weakness.
The interview was conducted before the G20 Finance Ministers and Central Bank Governors Meeting opened.
On foreign-exchange intervention involving yen purchases, he said, “All we can do is send a signal to the market,” and indicated that the Japanese government and the BOJ would take measures to correct the yen's weakness. Asked whether he was signaling additional rate hikes, he replied that “the market has already begun pricing in that possibility.”
He has repeatedly made remarks that could be interpreted as calls for the BOJ to raise rates. The BOJ's meeting is scheduled for 17 and 18 September.