28.10.202502:03:51UTC+00Yen Strengthens Ahead of Takaichi-Trump Talks

On Tuesday, the Japanese yen strengthened to approximately 152 per dollar, recovering from near eight-month lows, as anticipation built for a significant meeting between Prime Minister Sanae Takaichi and US President Donald Trump. The discussions between the two leaders are anticipated to cover trade relations, defense expenditure, and potential Japanese investments in the United States. Additionally, support for the yen increased following a statement from a Japanese minister indicating that the government would keep an eye on the currency's depreciation, while acknowledging that a weaker yen could benefit the economy by boosting exports. In terms of monetary policy, the Bank of Japan is widely expected to maintain its current interest rates this week, although officials are prepared to discuss the conditions necessary for resuming rate hikes as the risks associated with tariffs lessen. Recently, the yen had been under pressure due to expectations of vigorous fiscal expansion under the new administration and uncertainties regarding the Bank of Japan's policy direction.