Stories
Trump Alarms Japan PM Takaichi Over Weak Yen as Currency Nears 160 Per Dollar
- •US President Donald Trump expressed concern over the weak yen during a meeting with Japanese Prime Minister Sanae Takaichi in New York.
- •Japanese Finance Minister Satsuki Katayama confirmed Trump's concerns and Takaichi's acknowledgment of the undervalued yen as problematic.
- •Katayama stated she would continue close coordination with US Treasury Secretary Scott Bessent on foreign exchange issues.
- •The yen strengthened slightly to 158.33 per dollar after Katayama's remarks, though analysts suggest more than 'jawboning' is needed for a material change.
- •The Bank of Japan raised its policy rate to 1.25% on September 18, with Governor Kazuo Ueda signaling openness to further tightening, while the Fed's hawkish stance also influenced currency movements.
Key Questions Answered
US President Donald Trump raised concerns over the weakness of the yen during a meeting with Japanese Prime Minister Sanae Takaichi in New York. In response to Trump's concerns, Takaichi acknowledged that an undervalued yen was problematic.
The yen continued to weaken after both the Federal Reserve and the Bank of Japan raised interest rates, with the BOJ lifting its policy interest rate to 1.25% on September 18. While BOJ Governor Kazuo Ueda signaled openness to further tightening, hawkish rhetoric from the Fed prompted traders to price in higher probabilities of additional US increases.
The US and Japan previously conducted a coordinated yen-buying intervention in late July to boost the currency after it slid toward key psychological levels.
