FX.co ★ Yen Extends Gains Amid Bessent Warning

The Japanese yen strengthened toward 153 per dollar on Wednesday, hovering near its highest level in almost seven months after US Treasury Secretary Scott Bessent warned traders against shorting the currency. The former hedge fund manager said he has “pretty good insight” into the Bank of Japan’s likely actions when he takes a position and intervenes in the yen market. The BOJ is widely expected to raise interest rates next week, while the Takaichi administration has taken a more hawkish tone as policymakers recognize the need to curb excessive yen weakness. The currency is also rebounding from the bearish pressures that drove it to a 40-year low in July, supported by the unwinding of carry trades and expectations of increased capital repatriation. Separately, private-sector data showed that Japanese manufacturers’ sentiment improved for a second straight month in September, underpinned by solid demand for semiconductors and data centers.