U.S. and Japan shift yen talks toward a stronger currency

U.S. and Japanese officials moved their yen talks from concern over depreciation toward support for a stronger currency. The goal discussed was a yen that reflects Japan’s economic fundamentals, not a specific exchange-rate target.

Treasury Secretary Scott Bessent and Finance Minister Satsuki Katayama also reaffirmed that undervaluation is a concern. Katayama said Japan would not hesitate to take bold action and that excessive yen selling could be corrected, while the two sides agreed to stay in close communication on currency markets.