The weak yen was flagged as a concern at the Japan-US summit, heightening vigilance over currency intervention. On the 24th, the yen weakened into the 159 range amid rising US long-term interest rates, but on the 25th Finance Minister Satsuki Katayama said that President Trump had expressed concern about the weak yen at the Japan-US summit, briefly pushing the yen below 157. Prime Minister Sanae Takaichi also said on the night of the 25th that Trump had told her US trade was being hurt by the weak yen, and that she conveyed to him that, as a general matter, an undervalued yen is a problem. On the night of the 25th, Finance Minister Katayama held online talks with US Treasury Secretary Bessent, confirming that the yen's undervaluation is a problem, and Bessent conveyed the view that a strong yen reflecting the solid fundamentals of the Japanese economy is desirable. Vice Finance Minister for International Affairs Atsushi Mimura said in an interview with Reuters that the messages from Prime Minister Takaichi, Finance Minister Katayama, and the United States are very clear, and that his September remark that he is neither satisfied nor at ease with the current exchange rate is basically unchanged, with intervention vigilance pushing the yen higher into the mid-156 range.
Japan and US officials flag yen weakness as a problem and stress intervention vigilance, strengthening the yen.
