The US is urging Japan to adopt tougher monetary and fiscal policies after supporting the yen. Pressure is mounting on the BOJ to raise rates faster as inflation persists, while Japans expansionary fiscal stance fuels bond-market concerns and risks broader global financial volatility.

Bessent remarks temper yen selling ahead of G20 finance chiefs' meeting

A weak yen, which has pushed up import prices and broader inflation, has been blamed in part on the central bank’s slow pace of rate increases.