Japan is wagering that a hawkish shift at the Bank of Japan and an endorsement from U.S. Treasury Secretary Scott Bessent can give yen-buying intervention extra bite and help slow the embattled currency’s slide.
It is a strategy reliant on a small cast of heavyweights — the BOJ, the Japanese finance ministry and Washington — and aimed less at a dramatic turnaround than at raising the cost of betting against the yen.
Gov. Kazuo Ueda’s hawkish pivot last month marked an inflection point, bringing the central bank into rare alignment with the Ministry of Finance (MOF) and presenting markets with a more unified front as authorities seek to arrest the yen’s decline.
AloJapan.com