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Japan says undervalued yen is problematic, pledges closer US Treasury ties

Katayama linked the stance to market pressure on USD/JPY, which has traded around 157 in recent sessions after August’s joint intervention.

Reported · Written up by our desk · Central Banks

Japan’s Finance Minister Satsuki Katayama said Tokyo agrees with US Treasury Secretary Scott Bessent to step up cooperation and called an undervalued yen problematic, while adding that PM Shigeru Takaichi’s administration is not reflationary and that interest rates are market-driven, according to Forexlive.

Katayama said Japan will maintain close communication with the US Treasury around her planned September 25 phone talks with Bessent, and her comments suggest continued verbal pressure on the yen after August’s joint intervention, the outlet reported.

The yen remained the main read-through for currency traders, with USD/JPY around 157 in recent sessions, and Forexlive said her emphasis on market-set rates could offer some support to the yen and to Japanese government bond sentiment, though no specific level or action was mentioned.

Latest closeUSD/JPY 157.34 ▼0.1%

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