Tokyo and Washington Unite Against Yen Weakness
The Japanese yen has been on a strong run this month, surpassing 157 per dollar on Wednesday. This uptrend is largely attributed to verbal warnings from Tokyo officials signaling their determination to support the currency.
Finance Minister Satsuki Katayama mentioned that Japan and the US will maintain close communication to preserve stability in currency markets amid concerns over the yen's weakness. She also revealed that President Donald Trump expressed concern about the yen during a meeting with Prime Minister Sanae Takaichi.
Japan's top currency official, Atsushi Mimura, stated that the prime minister and finance minister, along with the US, had delivered a 'very clear' message regarding excessive currency depreciation. However, despite this support, the yen remains under pressure from wide interest-rate differentials between the US and Japan.