U.S. may welcome BOJ rate hikes despite strong-dollar policy

Treasury chief Bessent signals low tolerance for perceived currency manipulation

Bank of Japan Gov. Kazuo Ueda, left, and U.S. Treasury Secretary Scott Bessent spoke by phone shortly before the Feb. 7 U.S.-Japan summit. (Source photos by Nikkei and Reuters)

ISAYA SHIMIZU

February 19, 2025 02:42 JST

TOKYO -- Despite a stated preference for a strong dollar within President Donald Trump's administration, the U.S. could support Japanese interest rate hikes that shore up a yen seen as excessively weak, potentially pressuring Tokyo to get on board as well.

Amid an apparent policy power struggle within the administration, currency policy now appears to be led by Treasury Secretary Scott Bessent, whose comments point to a basic stance of favoring a strong dollar.