US and Japan Reaffirm Concerns Over Undervalued Yen
Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent shared concerns about an undervalued yen in a recent online meeting. The discussion follows a joint intervention by Japan and the US to prop up the yen in July, after it weakened to near its lowest level in over 39 years.
Bessent expressed concern that a weaker yen was hurting US trade during his meeting with Japanese Prime Minister Sanae Takaichi on Tuesday. Katayama noted there may have been some 'misunderstanding' in the currency market, but emphasized that an undervalued yen is a problem.
The two officials reaffirmed their commitment to strengthening cooperation and agreed to stay in close communication on currency markets. The meeting comes amid growing fears that Japan's worsening fiscal health could push down the yen further.