US-Japan talks on tariffs may pressure the Bank of Japan to raise rates sooner, as Washington links Japan's weak yen to trade imbalances, Nikkei reported Wednesday.

The talks, led by US Treasury Secretary Scott Bessent, follow a 24% tariff on Japanese goods. Trump has tied currency levels to trade fairness, while Tokyo denies pursuing yen weakness, according to the report.

Market odds of a BOJ hike in June or July have dropped but could rise if the weak yen becomes central to negotiations, the report said.

A potential Ishiba-Trump meeting during the June G7 summit may coincide with the BOJ's next policy review, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)