Trump Warns Japan Over Weak Yen at Summit with PM Takaichi

US President Donald Trump expressed concern about Japan's weak yen at a summit meeting with Japanese Prime Minister Sanae Takaichi, according to Finance Minister Satsuki Katayama. This frank account of leaders' talks is unusual and points to shared concern in Tokyo and Washington over the yen's continued slide.

Katayama said that Trump mentioned the weak yen was creating difficulties for their trade, and she responded that an undervalued yen is problematic as a general principle. However, there was no discussion of monetary or fiscal policy at the summit.

The leaders' discussion on foreign exchange reaffirmed the shared US-Japan stance behind their July 31 coordinated intervention to counter excessive volatility and disorderly moves in the yen. Treasury Secretary Scott Bessent and Katayama will continue to communicate closely on a range of matters, including foreign exchange.

Following the summit, Katayama held a call with Bessent, which strengthened bilateral cooperation on addressing the weak yen. The dollar has been rallying against the yen and other major currencies, driven by strong US economic data, a hawkish Federal Reserve, and surging US bond yields.