Takada Hajime, a policy committee member of the Bank of Japan, stated on 2026-07-02 that interest rate increases could occur more frequently and by larger margins, including the possibility of a 'big step' increase. ^[1] The yen strengthened against the dollar, reaching 156.5 per dollar in the Tokyo foreign exchange market on 2026-07-03, which was the highest level since August 10, 2026. ^[2] The yen rose sharply against the US dollar, extending a rally of more than 3 yen on the New York market, driven by expectations that the Bank of Japan (BOJ) will raise interest rates at its mid-September policy meeting. ^[3] Scott Bessent, US Treasury Secretary, urged the Bank of Japan on 2026-06-25 to take decisive monetary policy actions to address the yen's significant undervaluation. ^[4] The market probability of a September 2026 interest rate hike by the Bank of Japan rose to 97% following the officials' comments. ^[5] At 9am local time on September 3, 2026, the US dollar traded at 155.66-155.67 yen in Tokyo, before falling to 155.29 yen. ^[6] Bank of Japan Governor Kazuo Ueda expressed readiness to raise interest rates to align with economic conditions and price trends. ^[7]