Overview
- Japan’s finance minister, Satsuki Katayama, said President Donald Trump raised worries about the weak yen in a meeting with Prime Minister Sanae Takaichi, and Tokyo pledged closer coordination with Washington.
- Katayama disclosed this exchange on Friday, Sept. 25, and declined to specify exchange-rate levels or confirm whether officials had carried out ‘rate checks,’ a type of dealer contact markets often read as a warning before intervention.
- Markets moved modestly after the disclosure, with USD/JPY slipping from about 158.70 to near 158.40, but US 10-year yields above roughly 5.2% continue to structurally support the dollar and limit a larger yen rebound.
- The Bank of Japan’s recent policy shift to a 1.25% rate and focus on 2% inflation reduces one policy argument for yen weakness, yet officials must weigh intervention against strong US yields and economic data.
- If Tokyo and Washington move, the action could blunt import-driven inflation pressure for Japanese households and reduce the risk of cross-border bond-market stress, so watch for further public signals or confirmed dealer contacts as the next clues.