Japan, U.S. to leave currency policy to finance ministers, says PM Ishiba

Japanese Prime Minister Shigeru Ishiba said Friday that he and U.S. President Donald Trump agreed to leave foreign exchange rate matters to their finance ministers.

Ishiba stated that, as in Trump’s first administration, discussions on currency policy will remain between Japanese and U.S. financial authorities.

The announcement follows a video conference last month where Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent agreed to cooperate on currency-related issues. Analysts had anticipated that Trump might criticize the weak yen, which strengthens the dollar and reduces U.S. export competitiveness.

Japanese policymakers remain cautious about the potential impact of Trump’s statements on currency markets, fearing volatility that could disrupt Japan’s economic recovery. The yen’s depreciation has been a key concern amid efforts to stabilize the country’s financial outlook.