During last week’s Japan-U.S. summit, President Trump mentioned the weak yen, elevating the currency issue from a ministerial-level matter to a summit-level one.
It is highly significant that Prime Minister Takaichi—who, for better or worse, had been “delighted by the weak yen”—stated that “the yen’s undervaluation is a problem.”

Last Friday, the dollar-yen exchange rate began to slide around 5:39 p.m., falling from a high of 157.77 yen to around 156.85 yen.
There are also reports that the rate was checked ahead of the 158-yen threshold.

In Europe, PMI figures were released, with both the manufacturing and services sectors exceeding market expectations.
However, the market did not react to the PMIs and appeared to focus more on the decline in crude oil prices.

When crude oil prices fall, the need for the ECB to raise interest rates diminishes.
Inflation in the U.S. is driven by real demand stemming from factors such as data center construction, so even if crude oil prices fall slightly, the Fed under Chair Warsh is likely to proceed with rate hikes.

Earlier today, it was reported that Finance Vice Minister Mimura told reporters:
“The messages from U.S. President Takaichi, Finance Minister Katayama, and the United States are very clear.”
“I hope the market will take them at face value.”
“Our September assessment—that we are neither satisfied nor complacent with the current exchange rate—remains unchanged.”
Prompted by this, perhaps due to fears of intervention, the dollar-yen exchange rate plummeted, briefly touching 156.50 yen.

With yen weakness becoming an issue in both Japan and the U.S., if U.S. Treasury Secretary Bessent, Finance Minister Katayama, and even President Trump all unite to halt the yen’s decline, it will likely be only a matter of time.