Japan says Trump voiced concern over weak yen in summit with PM Takaichi

The weak Japanese yen has increased the cost of energy imports, which are already high due to the US-Israeli war on Iran. This has raised concerns about potential inflation overshooting. During a summit with Japanese Prime Minister Sanae Takaichi, US President Donald Trump expressed concern over the yen's weakening. Prime Minister Takaichi stated that an undervalued yen is problematic from a general principle standpoint.

The leaders' discussion on foreign exchange reaffirmed the US-Japan stance in their coordinated July intervention, aimed at counteracting excessive volatility and disorderly moves in the yen. The dollar has been strengthening against the yen and other major currencies, driven by robust US economic data, a hawkish Federal Reserve, and surging US bond yields.