U.S.-Japan push to strengthen yen may be undermined by BOJ rate split

Efforts by the United States and Japan to support a stronger yen may be weakened by a fundamental policy disagreement over the Bank of Japan. Treasury Secretary Bessent sees tighter monetary policy as essential to addressing yen weakness, while Prime Minister Sanae Takaichi is wary of raising rates out of concern it could hurt the economic recovery. The divide highlights the tension between currency support and domestic growth considerations, with the BOJ benchmark interest rate still at 1%.

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