US and Japan Reaffirm Yen Concerns Amid Prolonged Weakness
Japanese Finance Minister Satsuki Katayama met online with US Treasury Secretary Scott Bessent to discuss the yen's prolonged weakness. The two finance chiefs reaffirmed that an undervalued yen remains a concern, echoing their previous stance.
Katayama expressed her expectation that excessive yen selling will ease, suggesting there may have been some misunderstanding in the market and that the trend could reverse. However, she declined to comment on specific exchange-rate levels.
The meeting comes amid concerns from Bessent that a weaker currency could fuel inflation in Japan and drag US Treasury yields higher. The July 31 coordinated Japan-US currency intervention aimed at countering excessive volatility and disorderly market moves is still in effect, according to Katayama. Japanese authorities have also been conducting rate checks in overseas markets.