28.10.202506:53:24UTC+00Yen Strengthens on Finance Ministers Talk

The Japanese yen experienced a notable increase on Tuesday, surpassing the 152 yen per dollar mark. This rise comes as a sharp recovery from its near eight-month low. The uptick followed comments from US Treasury Secretary Bessent, who highlighted the importance of “sound monetary policy,” hinting at Japan’s slower pace in raising interest rates during her discussions with Japanese Finance Minister Katayama on currency volatility. Additionally, Japan’s Minister for Economic Revitalization indicated that the government is carefully observing the yen's depreciation, though he acknowledged that a weaker yen continues to bolster stronger export performance. In terms of monetary policy, the Bank of Japan is widely anticipated to maintain steady interest rates in its upcoming meeting. However, policymakers are poised to deliberate on the prerequisites for recommencing rate hikes as concerns related to tariffs diminish. Meanwhile, during a meeting in Tokyo, US President Trump expressed commitment to enhancing US-Japan relations and commended Prime Minister Takaichi’s initiative to increase defense spending. The two leaders also signed agreements pertaining to trade and critical minerals, thereby formalizing segments of a broader agreement initiated under Takaichi’s predecessor.