Yen Steadies Amid Verbal Warnings
The Japanese yen steadied around 157.5 per dollar on Tuesday, holding its recent gains as fresh verbal warnings from Tokyo lent support to the currency. On Monday, Japan’s top currency official Atsushi Mimura said the country’s prime minister and finance minister, together with the US, had delivered a “very clear” message regarding FX depreciation. Last week, Finance Minister Satsuki Katayama said President Donald Trump had raised concerns over the yen during a meeting with Prime Minister Sanae Takaichi. Katayama also spoke by phone with US Treasury Secretary Scott Bessent on Friday evening, reaffirming their view that the yen is undervalued and agreeing to further strengthen cooperation between Japan and the US. On the monetary policy front, a former Bank of Japan official said Monday that the central bank could raise its benchmark interest rate for a second straight month in October, citing elevated inflation risks.
5 per dollar on Tuesday, holding its recent gains as fresh verbal warnings from Tokyo lent support to the currency. On Monday, Japan’s top currency official Atsushi Mimura said the country’s prime minister and finance minister, together with the US, had delivered a “very clear” message regarding FX depreciation. Last week, Finance Minister Satsuki Katayama said President Donald Trump had raised concerns over the yen during a meeting with Prime Minister Sanae Takaichi.
Katayama also spoke by phone with US Treasury Secretary Scott Bessent on Friday evening, reaffirming their view that the yen is undervalued and agreeing to further strengthen cooperation between Japan and the US. On the monetary policy front, a former Bank of Japan official said Monday that the central bank could raise its benchmark interest rate for a second straight month in October, citing elevated inflation risks.