Trump Warns Over Weak Yen in Meeting with Japan's PM Takaichi

US President Donald Trump expressed concern over the weakness of the yen during a meeting with Japanese Prime Minister Sanae Takaichi earlier this week in New York, according to Japan's finance minister.

Takaichi responded by saying that an undervalued yen was problematic. Finance Minister Satsuki Katayama added that she would continue to coordinate with her US counterpart Scott Bessent on a range of issues, including foreign exchange.

The yen strengthened to around 158.33 per dollar late morning Friday in Tokyo, from around 158.70 before Katayama spoke. However, Charu Chanana, chief investment strategist at Saxo Markets, said that this was 'largely another way of jawboning' and that it would not change the underlying yen story materially unless followed by actual policy coordination or intervention.

The US and Japan previously conducted joint intervention in the currency market in late July to boost the yen. Katayama spoke after the yen moved back within range of the closely watched 160-per-dollar level following a five-day holiday period in Japan.