Japan Rejects Report of Bessent's Push for Strong Yen

By Makiko Yamazaki

TOKYO (Cryptonesia) – Japan’s lead currency negotiator refuted a news article on Monday claiming that U.S. Treasury Secretary Scott Bessent informed his Japanese counterpart during their bilateral discussion in Washington that a weaker dollar and stronger yen would be preferable outcomes.

As we mentioned earlier, the U.S. side didn’t bring up exchange-rate goals during the discussions between the finance ministers,” explained Atsushi Mimura, Japan’s vice finance minister for international affairs, to journalists.

The initial direct discussions between Japanese Finance Minister Katsunobu Kato and Bessent took place on Thursday during the margins of the International Monetary Fund and World Bank gatherings in Washington.

The Yomiuri newspaper reported on Friday evening that Bessent told Kato his preference for a weak dollar and strong yen, without citing sources.

On Saturday, Kato refuted the Yomiuri report via the X social media platform, reaffirming that they did not talk about exchange-rate goals or a system for managing yen values.

During the press conference, Kato remained reticent about the specifics of his 50-minute meeting with Bessent, refraining from disclosing whether the U.S. had put forth any particular demands to Japan.

President Donald Trump’s emphasis on tackling the U.S. trade imbalance and his previous statements blaming Japan for deliberately keeping the yen low have led markets to anticipate potential pressure on Tokyo to boost the yen’s strength relative to the dollar, thereby giving American producers an edge in competitiveness.

In an X post on Saturday, Bessent mentioned that he had "highly productive discussions" with Kato.

He expressed satisfaction at continuing the mutual trade talks between the United States and Japan, along with discussing issues related to currency exchange rates.

(Reported by Makiko Yamazaki; Edited by Christopher Cushing and Shri Navaratnam)