Key Takeaways
- US President Donald Trump expressed concern about the yen's weakness during a recent summit with Japanese Prime Minister Sanae Takaichi.
- The discussion on currencies reaffirmed the shared US-Japan stance behind their July intervention.
- The dollar has been rallying against the yen due to strong US economic data and rising bond yields.
During a recent summit meeting, US President Donald Trump raised concerns about the yen's weakness, according to Japan’s Finance Minister Satsuki Katayama.
Katayama disclosed this information at a regular news conference, stating that Trump expressed his concerns about the yen's value during their meeting.
In response, Prime Minister Takaichi informed Trump that an undervalued yen is problematic, as per general principles.
The discussion on foreign exchange reaffirmed the shared US-Japan stance behind their joint intervention in July, aimed at countering excessive volatility and disorderly moves in the yen.
The dollar has been strengthening against the yen, driven by robust US economic data, a hawkish Federal Reserve, and surging US bond yields.
Despite the intervention, the yen's gains were short-lived, as it briefly strengthened in overseas markets on Friday after Japanese authorities conducted rate checks.
Katayama declined to comment on whether global rises in government bond yields were discussed during the summit, noting that interest rates are affected by various factors.
The 10-year Japanese government bond yield reached a 30-year high of 3.115% on Friday, following a significant selloff in the US market.
The US and Japan will continue to communicate closely on a range of matters, including foreign exchange, as highlighted by Katayama.
