Bessent and Katayama Discuss Yen Weakness Amid Trump Concerns

Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent held an online meeting on Friday to discuss currency movements. The discussion came amid concerns from US President Donald Trump about the weak Japanese yen, which he views as a problem.

Katayama said she expects excessive yen selling to ease, suggesting that there may have been some 'misunderstanding' in the market and that the trend could reverse. She added that Japanese Prime Minister Sanae Takaichi 'responded that, generally speaking, the yen's undervaluation is problematic.'

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. He emphasized the importance of staying in close communication on currency markets.