US Treasury Secretary Bessent and the BOJ are coordinating to strengthen the Yen, with the BOJ expected to hike rates by 25 bps on Sept 18. Bessent explicitly states he has "asymmetric information" on Japanese policy and warns traders not to bet against the Yen, while technicals (breaking 155) show strong momentum. Go long on the Japanese Yen (via FXY) as fundamental rate differentials narrow and central banks actively support the currency. US Treasury has limited firepower for FX purchases; Japan selling US Treasuries could spike US yields, complicating the macro picture.
US Treasury Secretary Bessent and the BOJ are coordinating to strengthen the Yen, with the BOJ expected to hike rates by 25 bps on Sept 18. Bessent explicitly states he has "asymmetric information" on Japanese policy and warns traders not to bet against the Yen, while technicals (breaking 155) show strong momentum. Go long on the Japanese Yen (via FXY) as fundamental rate differentials narrow and central banks actively support the currency. US Treasury has limited firepower for FX purchases; Japan selling US Treasuries could spike US yields, complicating the macro picture.