Japanese yen slips after joint statement

The yen weakened to around 147.4 per dollar on Friday, giving up the prior session’s gains after the US and Japan issued a joint statement reiterating that exchange rates should remain market-driven and that excessive volatility is undesirable.

Japanese Finance Minister Katsunobu Kato said the statement carried weight given the new US tariff order, though he noted there were no discussions with US Treasury Secretary Scott Bessent on specific currency levels.

At home, investors continued to gauge the Bank of Japan’s policy outlook against mixed economic signals and political uncertainty.

Prime Minister Shigeru Ishiba recently announced his resignation, facing growing pressure after last year’s election defeat and widening divisions within the ruling party.

Externally, US inflation data came largely in line with forecasts, reinforcing expectations for deeper Federal Reserve rate cuts.