Post #15176

Yen Strengthens as U.S. Pushes Japan Toward “Sound Policy” The dollar holds steady ahead of the Fed’s expected rate cut, while the yen strengthens after U.S. Treasury Secretary Scott Bessent urged Japan to follow “sound monetary policy” — a remark traders took as a hint toward higher BOJ rates. USD/JPY slipped to around 151.8, as markets brace for the Bank of Japan meeting later this week. While no rate change is expected, investors will be watching closely for signals of when the next hike could come. Bessent’s comments suggest the U.S. prefers traditional rate adjustments over direct FX intervention, helping the yen catch a bid. Meanwhile, President Trump met with Japan’s new Prime Minister Sanae Takaichi, praising her plans to ramp up defense spending and deepen trade ties — adding another layer of optimism for Japan’s economic outlook.