Japan PM Told by US That Weak Yen Is Hurting American Trade, Takaichi Says

Deep News
Oct 02

Japanese Prime Minister Sanae Takaichi said that during her meeting with Donald Trump in New York last month, the US side explicitly pointed out to her that the weak yen was creating difficulties for American trade.

In an exclusive interview with a Japanese television network, when asked whether Japan and the US were aligned on addressing the weak yen, Takaichi responded: "During the Japan-US summit talks, the US side mentioned the difficulties that yen depreciation was causing for American trade. I said in response that, generally speaking, an undervalued yen is a problem."

Takaichi also said that US Treasury Secretary Scott Bessent, in his communications with Japanese Finance Minister Katayama Satsuki, expressed that he understood Japan's economic policies and did not make any specific demands regarding policy direction.

"My thinking remains unchanged, which is that we will continue to promote a strong economy based on responsible and proactive fiscal policy, and ensure the sustainability of government finances," Takaichi said in the interview broadcast Thursday evening.

The Trump administration has unusually vocally expressed concern about the weak yen. Treasury Secretary Bessent has repeatedly publicly suggested that the Bank of Japan should raise interest rates to help the yen reach an appropriate level.

In a speech at a Texas university, he stated outright that he was "quite familiar" with the next moves of Japanese policymakers and openly challenged speculators.

Japanese officials have generally downplayed the impact of US remarks on Japan's policy making. Previously, after the yen began trading near 164 against the dollar, Japan and the US jointly intervened in the currency market. It was the first time in 28 years that the two sides joined forces to support the yen, and Trump specifically praised the cooperation at the time as a reflection of the friendship between the two countries.

Takaichi's remarks show that addressing concerns about Japanese exporters benefiting from a weak yen was another motivation for Washington's support of Tokyo. In the interview, Takaichi did not comment specifically on the foreign exchange market, but instead discussed the idea of supporting the yen by revitalizing the economy.

She said: "We are seeking to raise Japan's potential growth rate and enhance supply capacity through bold investment in risk management and growth areas, thereby building a strong economy. I believe that improving the competitiveness of Japan's economy will ultimately help strengthen market confidence in the yen."

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