Japan, US Weigh Currency Talks Amid Yen Surge

The Japanese yen has risen against major currencies ahead of potential talks between Finance Minister Katsunobu Kato and US Treasury Secretary Scott Bessent, amid speculation of a possible but unlikely 'FX deal.' Market volatility has been fueled by concerns over US monetary policy independence, new tariffs, and President Trump's accusations that Japan manipulates its currency for export gains. Kato has denied these allegations, stating Japan's most recent intervention was yen-buying, not selling, and reaffirming that Japan does not manipulate its currency. Both governments have signaled openness to discussing exchange rate issues, though no specific agenda or meeting date has been set. Investor sentiment remains bullish on the yen, with further appreciation expected if key technical levels are surpassed. Previous trade talks have deferred to established agreements on foreign exchange policy.