12.09.202502:35:06UTC+00Japanese Yen Slips After Joint Statement

On Friday, the yen weakened to approximately 147.4 per dollar, surrendering the previous session’s gains following a joint statement from the US and Japan. This statement emphasized that exchange rates should be determined by market forces and highlighted the undesirability of excessive volatility. Japanese Finance Minister Katsunobu Kato remarked on the significance of this statement, especially in light of the new US tariff order, although he mentioned there were no specific currency level discussions with US Treasury Secretary Scott Bessent. Domestically, investors continued to assess the Bank of Japan's policy outlook amidst mixed economic indicators and political instability. Prime Minister Shigeru Ishiba recently announced his resignation under mounting pressure after the prior year's electoral loss and growing division within the ruling party. Internationally, US inflation data largely met expectations, fueling further anticipation of more significant interest rate cuts by the Federal Reserve.