Japan May Face Bessent Pressure to Address Weak-Yen Risks
Dow Jones08-31 14:29
0629 GMT - U.S. Treasury Secretary Scott Bessent may pressure Japan to maintain cautious fiscal discipline and call for Bank of Japan interest-rate increases at a coming G-20 meeting, says Takahide Kiuchi of Nomura Research Institute. He is likely to push for that to mitigate yen-weakening risks, in exchange for coordinated interventions, the economist writes in a note. "Curbing yen weakness helps correct dollar strength and contributes to reducing the U.S. trade deficit," Kiuchi says. The recent rise in JGB yields also threatens to spill over into U.S. markets and disrupt U.S. economic and financial stability, making yen defense a benefit to the U.S. as well, he adds. The dollar was last at 159.82 yen.
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