Katayama Warns of Undervalued Yen's Problems in Phone Call with US Treasury
Japanese Finance Minister Satsuki Katayama expressed concerns about an undervalued Japanese Yen, stating that it is generally problematic. This view was shared during a phone call with US Treasury Secretary Scott Bessent on September 25. The minister emphasized the need for close communication and cooperation between the two countries to maintain orderly foreign exchange markets.
Katayama also highlighted that her administration's policies are not reflationary, and interest rates are determined by market forces. She noted that the Bank of Japan will continue to communicate closely with bond markets and conduct an appropriate debt management policy.
The minister's comments come at a time when the USD/JPY pair is trading at 157.45, up 0.05% on the day. The Japanese Yen is one of the world's most traded currencies, and its value is influenced by various factors, including the performance of the Japanese economy and monetary policy.