Bessent, Japan discuss stronger yen as intervention looms
SingTao · 1 SOURCESabout 3 hours ago2 MIN
Summary
US Treasury Secretary Scott Bessent said on Friday that he recently spoke with Japanese Finance Minister Katayama Satsuki about the desirability of a stronger yen, arguing that such strength would reflect solid Japanese economic fundamentals. Japan’s Finance Ministry said the two sides reaffirmed concerns that the yen is undervalued and expressed willingness to deepen cooperation. The yen rose about 1% on Friday, with the dollar quoted at 157.28 yen and HK$4.9874 for every 100 yen. In a separate interview, Katayama said Japan stands ready to intervene in the market again to support the currency while stressing that Prime Minister Sanae Takaichi is not pursuing a reflationary agenda
Key Points
- Bessent said on social media Friday that he and Katayama discussed why a stronger yen would be desirable because it signals stronger Japanese economic fundamentals
- Japan’s Finance Ministry said after the call that both sides shared concern the yen is undervalued and wanted closer bilateral cooperation
- The yen strengthened roughly 1% on Friday, leaving the dollar at 157.28 yen, while 100 yen traded at HK$4.9874
- In a Bloomberg interview, Katayama said Prime Minister Sanae Takaichi is not a reflationist and respects the Bank of Japan’s independence
- Katayama said Japan is prepared to enter the market again to support the yen and played down concern over recent rises in Japanese government bond yields
Why It Matters
For Hong Kong readers, yen moves matter directly because the currency is widely used for travel, shopping and savings, and Friday’s move already changed the Hong Kong dollar cost of buying yen. The comments also matter for investors watching whether Tokyo will defend the currency again and whether Japanese policy will stay aligned with central bank independence rather than renewed ultra-loose settings