Japan’s Katayama warns on weak yen in talks with US Treasury, invokes Bessent's name

Finance Minister Katayama raised concerns about the weak yen during discussions with U.S. Treasury Secretary Scott Bessent, stating that one-sided declines in the currency are unacceptable. Her remarks were seen as verbal intervention, contributing to a slight recovery of the yen after periods of depreciating influence due to a widening interest rate differential and delayed Bank of Japan tightening. The implications of the comments signal limited tolerance for yen weakness, indicating that both verbal and potential direct interventions might be on the table. Overall, while the comments do not suggest a policy shift, they serve as a reminder of the risks surrounding the currency's stability amid growing economic pressures and geopolitical considerations.