Katayama says excessive yen selling may be corrected
Japan's finance minister Katayama repeats that the yen's weakness is overdone, as the dollar is down 0.76% against the yen
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Japan's finance minister Katayama said excessive yen selling may be corrected, a comment that keeps up a steady line from Tokyo on the currency's weakness. The dollar is down 0.76% against the yen.
Katayama and US Treasury Secretary Bessent have reaffirmed that yen undervaluation is a concern. Katayama has previously said Prime Minister Takaichi respects the Bank of Japan's independence and is ready to act on the yen, and that Takaichi told President Trump an undervalued yen is problematic. Trump raised yen weakness with Takaichi at a New York summit on Thursday, and Katayama has said Trump shared those concerns.
The yen had climbed to its strongest level against the dollar since September as Japanese yields rose, before the dollar rose 0.42% to 158.96 against the yen on Thursday, a fresh nine-week high, with an intraday peak of 158.98.
Katayama's latest remark reflects an ongoing consensus between Japanese and US officials that the yen's current weakness is excessive. It is consistent messaging rather than a shift in policy, and it leaves the yen's near-term path dependent on broader market moves rather than on any new signal of intervention.