Tokyo Warns Yen Won't Stay Weak Amid US Concerns

Japan's Finance Minister Satsuki Katayama told the market that Tokyo won't let the yen stay weak, echoing previous messages about Washington's concerns. Her comments on Friday helped push the currency up to its best day in two weeks, with USD/JPY strengthening to 158.33 per dollar from around 158.70 before she spoke.

The move was modest but significant, reminding investors that the yen is still trading on a delicate balance of policy signals, rate expectations, and diplomacy. Katayama mentioned that US President Trump expressed concern about the yen's weakness during their recent summit in New York, and Prime Minister Sanae Takaichi told him that an undervalued yen was 'problematic.'

The exchange shows both sides are still talking, which tends to matter more than outside investors sometimes assume. While Tokyo wants to avoid sounding like it's targeting the exchange rate directly, Washington wants to prevent a disorderly currency move that could complicate broader trade and inflation goals.