Sanae Takaichi says "undervalued yen is problematic" as Trump raises yen weakness

During their September 22 meeting in New York, President Donald Trump raised the yen's weakness with Japanese Prime Minister Sanae Takaichi, Finance Minister Satsuki Katayama disclosed on Friday. Takaichi said that, in principle, she viewed the yen's softness as a concern, adding that monetary and fiscal policy were not discussed. Other signals followed: Economic Revitalization Minister Minoru Kiuchi said the reflation-focused policy phase had ended, and Japanese officials conducted new rate checks, which can precede currency intervention. The yen strengthened and USD/JPY pulled back from near 160, after last week's Bank of Japan increase to 1.25%—the highest in 31 years—failed to give the yen lasting support because of a split vote and limited guidance.