Trump expresses concern over yen depreciation, Japanese Prime Minister says yen is undervalued and needs attention

(1) According to Japanese Finance Minister Katayama Satsuki, Trump expressed concerns about the depreciation of the yen during a meeting earlier this week in New York with Japanese Prime Minister Sanae Takaichi. (2) At a press conference after a Tokyo cabinet meeting on Friday, Katayama stated: "During the recent Japan-U.S. summit meeting, President Trump expressed concerns about the weakening of the yen." (3) In response, Katayama said that Sanae Takaichi indicated that the undervaluation of the yen is an issue that requires attention. (4) Katayama also stated that she will continue coordinating with U.S. Treasury Secretary Bensent to maintain close communication on a range of issues, including foreign exchange. (5) Katayama made these remarks as the yen, after a five-day holiday, returned to the closely-watched range of around 160 yen per 1 U.S. dollar. (6) In the previous week, both the Federal Reserve and the Bank of Japan announced interest rate hikes, yet the yen continued to weaken.