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Scott Bessent challenges traders to bet against the yen as the US dollar nears a seven-month low.

The US dollar approached its weakest point since February 18 as the Japanese yen rallied. The Bloomberg Dollar Spot Index fell by as much as 0.2% on Wednesday, driven primarily by gains in the yen, which advanced 0.5% in a single day and approximately 4% for the month.

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Scott Bessent challenged traders to test his resolve on the strengthening yen, stating that his market calls are made with inside information. The US Treasury Secretary is also preparing to reveal the scale of an expanded buyback program to restrain US bond yields. The Treasury Department is expected to announce the size of the next operation to repurchase outstanding 10- to 20-year securities later on Wednesday. Market participants are also monitoring upcoming US inflation data on Friday. This data is expected to help shape expectations for the Federal Reserve's policy decision next week. Money markets currently assign a 60% probability that the central bank will raise interest rates by a quarter point.

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