Japan’s Katayama says undervalued Yen generally poses problems

Japanese Finance Minister (FM) Satsuki Katayama said on Tuesday that she believes that undervalued Japanese Yen is problematic, while saying that she agreed with Treasury Secretary Scott Bessent to beef up cooperation when asked about phone talks on September 25.

Key quotes

Agreed with Bessent to beef up cooperation when asked about phone talks on Sept 25.

We believe that undervalued yen, in general, is problematic.

Will continue close communications with US treasury to ensure orderly forex markets.

Takaichi's administration is not reflationary.

Interest rates are determined by markets.

We believe that undervalued yen, in general, is problematic.

Will communicate closely with bond markets, conduct appropriate debt management policy.

Will communicate closely with market participants while maintaining high sense or urgency.

Market reaction

At the time of writing, the USD/JPY pair is up 0.05% on the day at 157.45.