The Bank of Japan tightened policy but the yen weakened, potentially undermining
US Treasury Secretary Bessent's drive to support the currency after he helped
lead a coordinated intervention earlier this summer—the first since 1998.
Evercore ISI analyst Krishna Guha said the BOJ's tilt toward hawkishness fell
short of market expectations; Bessent had flagged "information asymmetry," and
the BOJ's reluctance to signal more aggressive action will pressure efforts to
bolster the yen.
