Japanese, US financial chiefs discuss currency movements amid Trump ‘concern’

Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent discussed currency movements on Friday amid US President Donald Trump’s “concern” over the weak Japanese yen, reaffirming that an “undervalued yen is a problem.”

The two finance chiefs discussed the issue in an online meeting, according to Kyodo News.

Katayama said she expects excessive yen selling to ease, suggesting there may have been some “misunderstanding” in the market and that the trend could reverse.

Bessent has called on Tokyo to strengthen the yen, as a weaker yen could fuel inflation in Japan, while rising Japanese government bond yields could push US Treasury yields higher.

Bessent said he had "a productive call" with his Japanese counterpart.

"Our conversation built on President Trump’s discussion with Prime Minister Sanae Takaichi earlier this week and reflected the strength of the U.S.–Japan partnership," Bessent said on US social media company X.

He added that they discussed the desirability of a strong yen that reflects Japan’s strong economic fundamentals, and the importance of staying in close communication on currency markets.

Japanese Prime Minister Sanae Takaichi met Trump on Tuesday, and the latter expressed concern about the yen’s weakness, Katayama said.

According to public broadcaster NHK, Katayama said Takaichi “responded that, generally speaking, the yen’s undervaluation is problematic.”

The yen was trading at around 158 against the US dollar in Tokyo on Friday.

Japan and the US are military allies, with some 50,000 American troops stationed in the country under a bilateral security arrangement that has been in place since the end of World War II in 1945.