Trump Expresses Concern Over Yen Depreciation, Japanese Finance Minister Says Coordination with U.S. Will Continue

On September 25, Japanese Finance Minister Shunichi Suzuki stated that U.S. President Trump expressed concerns about the depreciation of the yen during his meeting with Japanese Prime Minister Fumio Kishida this week. Kishida responded that the undervaluation of the yen is an issue. Suzuki pointed out that Japan will continue to maintain close communication with U.S. Treasury Secretary Janet Yellen on a range of topics, including foreign exchange. Following these statements, the yen briefly rose by 1.1%, with the dollar falling to around 156.98 yen. Suzuki also stated that specific monetary policy tools are determined by the Bank of Japan and emphasized that the Bank of Japan should implement appropriate monetary policy while maintaining communication with the government. She further mentioned that the Japanese government will not hesitate to take bold actions. Market participants believe that the current statements primarily serve as verbal policy signals, and the Japan-U.S. interest rate differential and the Federal Reserve's interest rate path remain important factors influencing the yen's movement.