Japan Denies U.S. Pushed for Weak Dollar, Strong Yen at Finance Talks

Japan’s top currency official on Monday denied reports that U.S. Treasury Secretary Scott Bessent advocated for a weak dollar and strong yen during recent bilateral talks. Atsushi Mimura, Japan’s vice finance minister for international affairs, told reporters that the U.S. side "did not touch upon exchange-rate targets" in discussions with Japanese Finance Minister Katsunobu Kato.

The clarification follows a Yomiuri newspaper report claiming Bessent had expressed a preference for a weaker dollar during his first in-person meeting with Kato in Washington. Kato, who met Bessent on the sidelines of the IMF and World Bank meetings, also refuted the report via social media, stating that no exchange-rate targets or yen management frameworks were discussed.

Kato remained reserved when asked about specific requests made by the U.S. during the 50-minute meeting. Meanwhile, market speculation persists that Tokyo could face pressure to allow a stronger yen, given President Donald Trump’s ongoing push to narrow the U.S. trade deficit and his past criticism of Japan’s currency policies.

Bessent, in a separate X post, described his meeting with Kato as "very constructive," mentioning discussions on reciprocal trade and exchange rate matters without confirming any preference for currency movements.

The exchange-rate debate remains sensitive as both nations navigate trade and economic challenges. The yen's value against the dollar is closely monitored by global markets, given its impact on export competitiveness and inflation targets.