Global Market: US urges BOJ to keep raising rates, flags persistent yen weakness despite narrower yield gap

The US Treasury Department has urged the Bank of Japan to continue raising interest rates. This action aims to control inflation expectations and reduce excessive yen currency volatility. The yen has weakened significantly, reaching a 40-year low against the US dollar recently. Higher prices are impacting Japanese households' purchasing power despite wage gains. Further policy normalization by the Bank of Japan is seen as beneficial.