Yen Rebounds on Katayama Remarks

The Japanese yen strengthened to around 158 per dollar on Friday, recovering from two-week lows and snapping a five-session losing streak after Finance Minister Satsuki Katayama said President Donald Trump had expressed concerns about the yen during a meeting with Prime Minister Sanae Takaichi earlier this week. Markets were already alert to the possibility of intervention as the currency approached the key 160 level, which could test Tokyo’s tolerance for further yen weakness. Katayama reiterated that she would continue coordinating with her US counterpart Scott Bessent after Japan and the US carried out their first coordinated yen-buying intervention since 1998 in late July. The yen has faced renewed pressure as expectations for additional Federal Reserve rate hikes threaten to keep the US-Japan interest-rate differential wide. Uncertainty over the pace at which the Bank of Japan can continue tightening policy has also weighed on the currency.