In an interview during the G20 meetings, the U.S. Treasury secretary said the Japanese government and the Bank of Japan would take action leading to a stronger yen, offering an outlook on future policy responses. He also indicated that the market is pricing in a rate hike.
During the G20 Finance Ministers and Central Bank Governors Meeting, the U.S. Treasury secretary said in an interview with CNBC that he had information not available to the market, and indicated that the Japanese government and the Bank of Japan would take action leading to a stronger yen.
Asked about the possibility of an additional rate hike, he pointed out that the market is currently pricing one in, while expressing the view that U.S. monetary policy would remain cautious as supply shocks caused by the confrontation with Iran continue.
Treasury Secretary Scott Bessent is expected to meet with Bank of Japan Governor Ueda (植田) and others during the meetings, and his comments on foreign exchange and monetary policy are expected to draw attention.