Trump's Intervention Strengthens Yen as Japan Shifts Away From Abenomics

The Japanese yen is strengthening against other major currencies after remarks from Japanese Finance Minister Satsuki Katayama, who revealed that Donald Trump expressed concern over the yen's weakness during a meeting in New York. The USDJPY pair has fallen by 0.4%, approaching the 158 level.

Katayama said she would continue to coordinate actions with her American counterpart, Scott Bessent, including on foreign exchange rates. This move coincided with comments from Minoru Kiuchi, Minister for Economic Growth Strategy, who announced an end to Japan's reflationary regime and a shift towards gradually rising prices and interest rates.

The yen has been under pressure due to recent upward revisions in US interest rate hike expectations following strong PMI data. Investors are now waiting for comments from BoJ officials that could lead to a similar repricing of Japanese interest rate expectations.