Japan’s Katayama says undervalued Yen generally poses problems
Japanese Finance Minister (FM) Satsuki Katayama said on Tuesday that she believes that undervalued Japanese Yen is problematic, while saying that she agreed with Treasury Secretary Scott Bessent to beef up cooperation when asked about phone talks on September 25.
Japanese Finance Minister Satsuki Katayama stated on Tuesday that an undervalued Japanese Yen poses general problems. She agreed with Treasury Secretary Scott Bessent to enhance cooperation after discussing phone talks on September 25. Katayama affirmed that her administration will maintain close communications with the US Treasury to ensure smooth forex markets.
The Japanese Yen, one of the world's most traded currencies, is influenced by various factors such as the Japanese economy's performance, Bank of Japan's policy, bond yield differentials, and risk sentiment among traders. The Bank of Japan, which directly intervenes in currency markets to lower the Yen's value, has maintained ultra-loose monetary policy since 2013, contributing to the Yen's depreciation.
Recently, gradually unwinding this policy has supported the Yen's value. Despite turbulent times often strengthening the Yen's value, geopolitical risks and rising Fed rate-hike bets have kept the US Dollar near a two-month high, thus supporting the Yen.
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