Prime Minister Sanae Takaichi said she was told during her talks with U.S. President Donald Trump in New York last month that U.S. trade is suffering due to the weakness of the yen. She was responding to a question over whether the U.S. and Japan are aligned on tackling the weakness of the currency.
Takaichi added that in conversations with Finance Minister Satsuki Katayama, U.S. Treasury Secretary Scott Bessent had indicated he understood the Japanese government’s economic policy and had not made any requests regarding its direction. The Trump administration has been unusually vocal in expressing its concern over the weak yen.
Bessent has repeatedly suggested the Bank of Japan should raise interest rates to help the yen find an appropriate level. In a speech at a university in Texas, he said he had “pretty good insight” into what Japanese policymakers were going to do and even dared speculators to bet against him. Japanese officials have generally played down the influence of the U.S. comments on policymaking.
Tokyo and Washington conducted a joint intervention in currency markets after the yen started trading around ¥164 against the dollar. The move was their first joint action to prop up the yen in 28 years. At the time, Trump described the intervention as a sign of friendship.
Takaichi’s comments suggest addressing concerns that Japanese exporters are benefiting from a weak yen is another incentive for Washington to back Tokyo. In the interview, Takaichi avoided making any specific comments on currency markets and spoke instead of her vision for economic revitalization that would support the yen.
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