U.S. Treasury Secretary Scott Bessent said he expects the Japanese government and the Bank of Japan to take action that leads to a stronger yen. The yen gained against the dollar after his comments, which suggested a strong chance of a BOJ rate hike at its September meeting.
U.S. Treasury Secretary Scott Bessent told CNBC on Monday that he believes the Japanese government and the Bank of Japan will act in ways that strengthen the yen. According to Reuters: "the BOJ will do the things that will lead to a stronger yen", he said.
Asked whether that meant raising interest rates, Bessent said the market was already pricing that in. The yen gained against the dollar after his remarks, which suggested a strong chance the BOJ will raise interest rates at its next policy meeting in September.
Bessent made the comments while hosting a Group of 20 finance leaders' gathering in Asheville, North Carolina. BOJ Governor Kazuo Ueda is attending the meetings, and Bessent had said he was likely to meet him on the sidelines.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
