The transpacific yen team has a weak link in Ueda
The bank's statement on stabilizing underlying CPI inflation was seen as a hawkish shift, but its vague language did not provide the clear message that markets were looking for.
The transpacific group working to strengthen the yen appears to have a notable weak point in Japan. Following Thursday's unexpected move where the yen surged the most in over two years against the dollar, it became evident that governments in the U.S. and Japan were in sync, a collaboration previously thought improbable. Atsushi Mimura, Japan's top currency official, suggested that Tokyo had support from Washington extending "beyond mere moral support."
This assistance likely included rate checks from the U.S. Treasury, with Secretary Scott Bessent stating publicly that the yen was "very undervalued," alongside coordination with South Korea, also rumored to be intervening in the won market. Seoul authorities confirmed they are communicating with both Tokyo and Washington, underscoring the international nature of this currency maneuver.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
