Trump raised weak yen in talks with Takaichi, Japan finance minister says

US President Donald Trump voiced concerns about the weak yen during a summit with Japanese Prime Minister Sanae Takaichi, according to Japan’s Finance Minister Satsuki Katayama. The exchange of worries over the yen's decline was disclosed by Katayama for the first time at a press conference, after consulting with Takaichi’s office.

Prime Minister Takaichi expressed a general principle that an undervalued yen is problematic, signaling shared concerns between Tokyo and Washington. The leaders' discussion on currency reaffirmed the joint US-Japan stance behind their July 31 coordinated intervention, including a commitment to curb excessive volatility and disorderly movements in the yen.

The yen has rallied against the dollar and other major currencies, boosted by strong US economic data, a hawkish Federal Reserve, and rising US bond yields. The rising yen is increasing energy import costs, which are already high due to the US-Israeli conflict in Iran, leading to worries about potential inflation overshooting in Japan and the US.