Yen strengthens on Finance ministers talk

The Japanese yen strengthened toward 152 per dollar on Tuesday, rebounding from near eight-month lows after US Treasury Secretary Bessent called for “sound monetary policy” in a swipe at Japan’s slow pace of rate hikes while discussing currency volatility with Japanese Finance Minister Katayama.

Japan’s economic revitalization minister also said the government is closely monitoring the yen’s weakness, noting that a softer currency still provides support through stronger exports.

On the monetary front, the BOJ is widely expected to keep interest rates unchanged this week, though policymakers are set to debate conditions for resuming rate hikes as tariff-related risks ease.

Meanwhile, US President Trump pledged stronger US-Japan ties and praised PM Takaichi’s plans to boost defense spending during their meeting in Tokyo, where the two leaders signed agreements on trade and critical minerals, formalizing parts of a broader deal negotiated under Takaichi’s predecessor.