Satsuki Katayama, Japan's Minister of Finance, disclosed that US President Donald Trump expressed concern about the yen's weakness during talks with Japanese Prime Minister Sanae Takaichi at United Nations headquarters in New York on Tuesday, which fell on September 22. Prime Minister Takaichi told President Trump that the yen's undervaluation is a problem. Speaking to reporters after a cabinet meeting in Tokyo on September 25, Katayama said she could disclose only some details of the leaders' discussions after consulting with the Prime Minister's Office, and noted that publicly revealing the Japanese and US leaders' views on currency movements is unusual. Japan's finance minister also said she will continue to discuss various issues with US Treasury Secretary Scott Bessent, including exchange rates. Katayama's remarks came after the yen moved close to the 160 yen per dollar level, a level that is being watched closely, following the end of Japan's five-day holiday period. The yen has continued to weaken after both the US Federal Reserve and the Bank of Japan raised interest rates last week. Katayama said that, as she understands it, the Bank of Japan raised its policy interest rate based on an assessment of economic conditions, prices, and financial conditions, with the aim of achieving its 2% price stability target in a sustainable and stable manner.
Trump and Takaichi flag the yen's undervaluation as a problem and Japan's finance minister says exchange-rate talks with the US will continue, signaling official concern over yen weakness.
Article notes BOJ raised its policy rate last week, but the news focus is yen weakness and US-Japan currency talks, giving no clear directional signal for JGB yields.
