Trump raised yen weakness with Takaichi in New York
Finance minister Satsuki Katayama said Donald Trump raised yen weakness with Prime Minister Sanae Takaichi in New York, Reuters and Jiji via Nippon.com reported on 25 September. Takaichi said she called an undervalued yen problematic and that monetary and fiscal policy were not discussed. Reuters said the yen firmed from 158.60 per dollar to about 158 and the 10-year yield hit 3.1150 per cent, a 30-year high.
Economics & Markets··Evening
Katayama quotes the New York exchange
Japan's finance minister Satsuki Katayama said on 25 September that Donald Trump raised yen weakness with Prime Minister Sanae Takaichi at their New York meeting, Reuters reported. Nippon.com, carrying Jiji Press, reports the same Friday statement: Katayama said Trump expressed concern over the yen's weakening during the meeting with Takaichi in New York on Tuesday. Reuters says Katayama was disclosing the exchange for the first time after consulting the Prime Minister's Office, and that she and Treasury Secretary Scott Bessent stay in close contact on foreign exchange. Nippon.com says the July coordinated yen-buying intervention, the first in about 28 years, was affirmed at the summit according to Katayama, and that further intervention has not been ruled out.[1], [2]
Takaichi says policy was not on the table
Reuters says Takaichi later confirmed she answered that an undervalued yen is problematic, and that monetary and fiscal policy were not discussed. Nippon.com reports her saying the same split: she told Trump that undervaluation of the yen is a problem in general terms, and she told reporters that the two leaders did not discuss monetary and fiscal issues at the summit. Reuters adds her line that the US side described the weak yen as creating difficulties for American trade. Nippon.com quotes her that there is no change in the administration's stance of seeking a strong economy and fiscal sustainability together under what she calls responsible and proactive public finances.[1], [2]
The yen and the 10-year yield moved
Reuters said the yen firmed from 158.60 per dollar to about 158 after the remarks. The 10-year Japanese government bond yield hit 3.1150 per cent, a 30-year high. Nippon.com says the yen had been depreciating rapidly since late last week, with the dollar briefly rising above 159 yen early on Friday. Reuters also carries two domestic readings. Minoru Kiuchi, the economic revitalisation minister, said the phase of Abenomics-style reflation, with monetary easing and agile fiscal spending, is over. Hirofumi Suzuki at Sumitomo Mitsui Banking Corp treated the remarks as a sign of concern about yen weakness. Those comments are Reuters's, not Jiji's.[1], [2]
