Japan Says Katayama and Bessent Share Concern Over the Yen’s Undervaluation
Japan’s Finance Minister Katayama and US Treasury Secretary Scott Bessent reaffirmed on 25 September that the undervaluation of the yen is a matter of concern, Japan’s Ministry of Finance said. The two held a conference call at 12:00 GMT. They said the position was the one discussed at the summit meeting between Japan and the United States and stated by Prime Minister Takaichi. The ministers also exchanged views on developments in financial markets and reaffirmed their intention to further strengthen cooperation between Japan and the United States.
Where the yen stands
The dollar traded at 158.83 to 158.84 yen at 00:00 GMT on 25 September and at 158.09 to 158.11 yen at 08:00 GMT, according to the Bank of Japan, before the call took place. The central rate for the day was 158.73. On our calculation, the dollar’s 08:00 GMT level on 25 September was 0.74 yen below its 00:00 GMT level and about 0.1 yen below the previous day’s 08:00 GMT reading, with a range of 0.89 yen on the day.
| US dollar/yen, Tokyo | 24 September | 25 September |
|---|---|---|
| 00:00 GMT | 158.26 to 158.28 | 158.83 to 158.84 |
| 08:00 GMT | 158.20 to 158.23 | 158.09 to 158.11 |
| Day’s range | 157.80 to 158.48 | 157.95 to 158.84 |
Bank of Japan, Foreign Exchange Rates, Tokyo market. All readings precede the 12:00 GMT call.
Why it matters: On our reading, an official Japanese readout attributing concern about the yen’s undervaluation to both finance ministers shows the currency’s level being discussed as a shared US and Japanese concern rather than solely a Japanese policy issue.
Outlook: Dollar yen trading in the coming sessions, benchmarked by the Bank of Japan’s daily rates, will show whether the language is followed by a sustained market response.
Sources: Japan Ministry of Finance, Bank of Japan.
