Yen Soars as U.S. and Japan Agree on Undervaluation Concerns

The yen surged against the dollar in New York foreign exchange trading on September 25, briefly rebounding to the low-157 range. This increase was attributed to a phone call between U.S. and Japanese finance chiefs, where both sides reaffirmed that yen undervaluation remains a concern.

Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent spoke by phone on the evening of September 25 Japan time. They exchanged views on financial market developments and agreed to further strengthen cooperation between the two countries.

The yen strengthened 1.06% to 157.13, halting a four-day losing streak. The daily gain was the largest since September 7. Despite this, the yen is still headed for a second consecutive weekly decline.