Trump's Yen Weakness Concerns Spark Dollar-Yen Sell-Off
Japanese Finance Minister Satsuki Katayama revealed that US President Donald Trump expressed concerns over yen weakness during their summit. This led to a spike in dollar selling and yen buying, causing the dollar-yen exchange rate to soften to 158.33.
Katayama also stated that she expects the Bank of Japan to continue working closely with the government to pursue monetary policy aimed at achieving a 2% price target. She added that the principles established since the Japan-U.S. coordinated intervention remain alive, but refused to comment on exchange-rate levels.
The market reaction was mixed, with dollar-yen rebounding in Tokyo trading after falling to 157.79 due to dollar selling ahead of the daily fixing. However, rising US yields on expectations of additional Federal Reserve rate hikes drove the dollar back up to 158.48 before settling around 158.20-158.30.