Yen weakness shadows G20 as Katayama, Ueda head to Asheville talks

The Japanese yen's renewed drift toward 160 against the dollar, despite last month's rare coordinated intervention, is keeping currency traders attentive to any hint that Tokyo and Washington might step in again. When Satsuki Katayama described the joint statement with Treasury Secretary Scott Bessent as something that "still lives," officials appeared to be trying to keep the threat of intervention credible without pledging fresh action — a stance the market is likely to test if the yen softens further. Whether Katayama and Bessent hold a sideline meeting in Asheville will be seen as a gauge of how seriously either capital is taking the yen's renewed weakness, and Kazuo Ueda's likely presence adds another avenue for BOJ policy signals to emerge.

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Earlier:

• US to press G20 on growth, imbalances and Iran sanctions at Asheville talks
• Tokyo inflation data strengthens case for September BOJ hike

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The yen has slipped back close to its pre-intervention trough, increasing the pressure on Tokyo and Washington to demonstrate that their bilateral currency statement still matters.

Summary:

• Japanese Finance Minister Satsuki Katayama confirmed she will travel to Asheville, North Carolina, for next week's G20 finance leaders meeting, saying she wants to play a part in global economic and financial discussions.
• Bank of Japan Governor Kazuo Ueda is also expected to be there, though the BOJ has not confirmed it; US Treasury Secretary Scott Bessent said he wants to meet Ueda in Asheville.
• Traders are watching for any bilateral encounter between Katayama and Bessent, following their coordinated yen-buying operation last month.
• The yen is again approaching 160 per dollar after briefly strengthening to 155.20 after the joint intervention; earlier it had hit a 40-year low near 164. On Friday it stood at 155.41.
• Katayama said the joint statement with Bessent on intervention remains in effect, calling it "very strong" and saying it "still lives."
• She added that government measures to raise investment and strengthen Japan's growth prospects would bolster the yen's credibility by improving its global competitiveness.

Japan's Finance Minister Satsuki Katayama said on Friday that she will attend next week's meeting of Group of 20 finance officials in Asheville, North Carolina. Speaking to reporters after a regular cabinet session, she expressed a hope of participating in debate on the world economy and international finance. Her presence comes as currency markets stay on the lookout for any sign of renewed teamwork between Japan and the United States on the yen's persistent slide.

Bank of Japan Governor Kazuo Ueda is also anticipated at the G20 event, although the central bank has not officially revealed his schedule. US Treasury Secretary Scott Bessent has already stated that he looks forward to seeing Ueda in Asheville, raising expectations that currency and monetary policy will be front and centre in informal discussions. Markets are especially interested in whether Katayama will sit down directly with Bessent, given the duo's co-ordinated yen-buying effort last month to halt the currency's decline.

That operation produced only a temporary and apparently diminishing effect. The yen, after touching a 40-year trough of nearly 164 per dollar last month, surged to as high as 155.20 immediately after the joint action was announced. But it has since slipped back toward the 160 level, settling at 155.41 per dollar on Friday, leaving market participants unsure how durable the support from that intervention will turn out to be.

When asked about the yen's stubborn softness, Katayama defended the continued relevance of the joint statement she issued with Bessent, labelling it "very strong" and affirming that it "still lives" — language that seems meant to protect the credibility of an intervention threat without explicitly signalling imminent new action. She also noted wider government initiatives to increase investment and fortify Japan's underlying growth capacity, saying those moves would over time boost the yen's credibility by improving the currency's global competitiveness.

The G20 gathering thus falls at a sensitive juncture for Japan's currency policy, with officials needing to balance assurances that co-ordinated action is still an option against the reality that the yen has already given back much of its post-intervention appreciation. Any bilateral encounter between Katayama and Bessent, or any remark from Ueda on the meeting's fringes, will be closely examined by markets for clues on whether further joint steps might be taken if the currency continues to weaken.