U.S. Treasury Secretary Scott Bessent urged Bank of Japan Governor Kazuo Ueda to implement monetary policies that curb excessive volatility in the yen and anchor inflation expectations. Bessent made the request during a meeting on Sunday in Asheville, North Carolina, ahead of the two-day G20 finance leaders’ gathering that concluded on Tuesday.
The U.S. Treasury highlighted Japan’s efforts to address the yen’s undervaluation, noting that currency weakness has contributed to rising import costs and elevated domestic inflation. Bessent emphasized the need for clear policy communication to prevent destabilizing foreign exchange movements.
The appeal comes as markets anticipate the Bank of Japan’s next policy meeting on September 17 and 18, where expectations of a potential interest rate hike have strengthened. The yen’s depreciation has intensified inflationary pressures, increasing living costs for Japanese households and complicating the BOJ’s policy stance.
