President Trump expressed concern over yen depreciation, and the market moved in the yen and dollar-yen exchange rates following the Japan-U.S. summit meeting. The market’s assessment of the results of the U.S.-China summit was also reported, while oil prices and interest-rate trends are affecting the outlook for this week.
Reports said that following the Japan-U.S. summit meeting, President Trump expressed concern that “yen depreciation will make trade more difficult,” and the market closely watched the yen’s reaction alongside remarks by Finance Minister Katayama and Minister of State for Economic and Fiscal Policy Kiuchi. The dollar-yen pair continued to move around its 200-day moving average, while reports indicated that the momentum for yen selling was weakening.
The U.S.-China summit produced no major agreement. An extension of the tariff truce and China’s suspension of restrictions on rare earths were reported, but the measures last only about 2 months, limiting the market reaction. Reports also said that a proposal had been made to call AI “SI” and that a new dialogue framework between Japan and the U.S. was under consideration.