Archive · 13 Jan 2026
Japan and US Concerned Over Yen Depreciation
Japan and the United States are worried about the yen, Japan's money, getting weaker.
It's now at 158 yen for one US dollar, which is a big change.
Japan's finance minister and the US treasury secretary talked about this and agreed it's a problem.
Japan might take action to stop the yen from falling too much, especially if it reaches 160 yen per dollar.
This is because a weak yen makes things Japan buys from other countries more expensive.
There's also talk that Japan's prime minister might call an early election, which could make the yen even weaker.
Japan says the yen's weakness doesn't match the country's economic situation, and they have the right to intervene in the currency market to fix this.
Japan and the US share concerns over the yen's one-sided depreciation, with the yen crossing 158 yen per dollar.
Japan's Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent discussed the issue, hinting at possible market intervention.
A weak yen inflates import costs and weighs on households, potentially affecting Prime Minister Sanae Takaichi's popularity.
Japan signals readiness for market action, with potential intervention if the yen hits 160 per dollar.
Japan cites a joint Japan-US statement from September, which allows for intervention to combat excess volatility in currency markets.
- Who
- Japan's Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent
- What
- Shared concerns over the yen's one-sided depreciation and potential market intervention
- When
- Recent discussions, with the yen crossing 158 yen per dollar
- Where
- Washington, during a bilateral meeting on the sidelines of a multilateral meeting on critical mineral supply chains
- Why
- To address the yen's slide and its economic impacts, including inflated import costs and potential effects on Prime Minister Sanae Takaichi's popularity
- Currency Concern
- One-sided depreciation of the yen
- Key Exchange Rate
- 158 yen per dollar
- Potential Election
- February snap election speculated
- Market Intervention
- Japan signals readiness for action
- US Treasury Response
- No immediate comment on bilateral meeting
- Japan's Stance
- Yen weakness deviates from fundamentals
- Intervention Threshold
- Possible intervention at 160 yen per dollar
- Japan-US Statement
- Commitment to market-determined currency rates