President Donald Trump expressed concern regarding yen weakness during a Sept. 22 summit with Japanese Prime Minister Sanae Takaichi in New York on the sidelines of the UN General Assembly. Finance Minister Satsuki Katayama disclosed the exchange—an unusually detailed account of currency discussions typically kept confidential—after consulting with the Prime Minister's Office.
Takaichi affirmed to Trump that "an undervalued yen is problematic," framing the issue as a general principle rather than immediate policy threat. The statement signals Tokyo's discomfort with current valuations but stops short of committing to intervention.
The yen briefly strengthened following the comments and after Japanese authorities conducted rate checks on Friday, a move often preceding direct intervention. But gains proved short-lived. The dollar has rallied against the yen and other major currencies, driven by robust U.S. economic data, a hawkish Federal Reserve stance, and surging U.S. bond yields.
The leaders' discussion reaffirmed the shared U.S.-Japan stance that underpinned their coordinated intervention on July 31, which committed both nations to counter excessive volatility and disorderly moves in the yen. Following the summit, U.S. Treasury Secretary Scott Bessent and Katayama committed to continued close communication on foreign exchange, indicating ongoing dialogue and potential for future coordinated actions.
Japan's benchmark 10-year government bond yield jumped to a 30-year high of 3.115 percent on Friday, following a steep selloff in the U.S. bond market. When asked whether global rises in government bond yields were specifically discussed at the summit, Katayama declined to comment, stating that "interest rates are affected by a variety of factors. As for us, we are steadily doing what we can."
