US presses BOJ on rate hikes as yen hits 40-year low ... intervention threat looms
EUR/USD — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
Rabobank | Bearish | 1.1000 |
ING | Bullish | 1.1300 |
MUFG | Neutral | 1.1200 |
From the original
The Treasury's language keeps pressure on Tokyo to accelerate policy normalisation, but it stops short of any direct US action, leaving the yen's fate largely in the Bank of Japan's hands. With the currency at a 40-year low and Japanese authorities already signalling readiness to
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4 itemsBessent heads to Tokyo pressing Japan on yen weakness and intervention
Lead — The desk interprets US Treasury Secretary Bessent's recent visit to Tokyo as a pivotal moment in the ongoing debate over Japan's monetary policy and currency management. Bessent's preference for Bank of Japan (BOJ) rate hikes over yen intervention highlights the growing concern regarding the impact of Japanese financial flows on US Treasury yields. Per the full note [source], Bessent's advocacy for rate hikes comes amid speculation of a potential BOJ tightening as early as next month, which could significantly influence market dynamics. The desk notes that the current consensus target for USD/JPY reflects a cautious stance amidst these developments.
Yen hits 40-year low as Treasury yields drive dollar higher
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