BOJ's Rate Rise Triggers Yen Selling and a Likely Concern for Treasury's Bessent
Dow Jones
Sep 18
0925 ET - The Bank of Japan answered U.S. Treasury Secretary Scott Bessent's call to raise rates, but the yen is still weaker, potentially creating a new concern for Bessent, who helped lead the first coordinated support for the yen since 1998 earlier this summer. "The result was that while the BoJ certainly did shift hawkish, it was not enough to meet market expectations ramped up by US Treasury Secretary Bessent who had talked up his 'asymmetric information' in his battle to strengthen the Yen," says Krishna Guha of Evercore ISI. "The BoJ's reticence to signal more aggressive policy will strain his efforts to strengthen the Japanese currency." The Japanese yen is off 1% against the U.S. Dollar at 157.73 JPY.
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