US and Japan Reaffirm Yen's Undervaluation Concerns After Joint Intervention
Japan and the US have reaffirmed that the yen's undervaluation is problematic. This statement was made by Japanese Finance Minister Satsuki Katayama after a virtual meeting with US Treasury Secretary Scott Bessent on Friday. The two countries had already conducted their first concerted yen-buying currency market intervention in about 28 years in late July, in an effort to correct the weakness of the Japanese currency.
Katayama and Bessent did not rule out the possibility of further coordinated intervention in a statement released later. This is in line with comments made by Japanese Prime Minister Sanae Takaichi after a meeting with US President Donald Trump on Tuesday, where Trump expressed concern over the yen's weakening against the dollar.
Takaichi responded to Trump's concerns by stating that the yen's undervaluation is problematic. This reiteration of their stance suggests that both countries are committed to addressing the issue and maintaining stability in financial markets.