Japan Warns Markets to Take Yen Weakness Seriously After Trump Concern

Japan's top currency diplomat Atsushi Mimura has urged markets to take warnings about the yen's decline seriously. He warned that the country would closely monitor market reactions and did not rule out further action, but declined to comment on possible intervention in currency trading.

Last week, US President Donald Trump expressed concern about the yen's weakness during a meeting with Japanese Prime Minister Sanae Takaichi. Finance Minister Satsuki Katayama also discussed the situation by phone with her US counterpart Scott Bessent, and both sides confirmed that the yen's undervaluation was a cause for concern.

The yen strengthened sharply against the dollar after Mimura's remarks, moving past 157 to around 156.75 yen per dollar. A weak yen raises import costs, including energy, which has been affected by the war in the Middle East.