Yen rises as Japanese officials say weak currency is problem
The currency strengthens as much as 1.2%, the most since Sep 7, to 156.94 per dollar on Friday
The Japanese yen strengthened by up to 1.2% on Friday, reaching a three-week high of 156.94 per US dollar. This marked its best day in nearly three weeks as Japanese officials discussed the challenges posed by a weak currency during meetings with their US counterparts. The currency outperformed all its Group-of-10 peers. Prime Minister Sanae Takaichi expressed that an undervalued currency is "problematic" during a meeting with US President Donald Trump.
Treasury Secretary Scott Bessent also mentioned the "desirability of a strong yen" in discussions with Japanese Finance Minister Satsuki Katayama. Market strategists suggest that intervention risk could limit further yen weakness, and the currency may be nearing a turning point due to US-Japan coordination to support it. The yen has faced increased pressure as expectations of further Federal Reserve rate hikes widen the US-Japan interest-rate gap.
Concerns over the Bank of Japan's lagging rate hikes and structural carry appetite have contributed to the currency's strength, which appears to be reactive and weak.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Yen rises as Japanese officials say weak currency is problem japantimes.co.jp
