Summary:Katayama raises concerns over weak yen with WashingtonSays one-sided FX moves unacceptableConfirms bilateral meeting with US Treasury’s BessentYen strengthens following verbal interventionOfficials signal tolerance for weakness is limitedThe yen strengthened after Finance Minister Katayama signalled renewed concern over the currency’s weakness, confirming she had raised the issue directly with U.S. officials in Washington.Katayama said she had held a bilateral discussion with U.S. Treasury Secretary Scott Bessent, during which he conveyed Japan’s concerns about what he described as a “one-sided” decline in the yen. Katayama said she had explicitly shared Tokyo’s unease over the weak currency, reinforcing the message that excessive or disorderly moves in foreign exchange markets remain unacceptable.The comments were interpreted by FX markets as a clear bout of verbal intervention, helping the yen blip higher after a period of sustained depreciation driven by widening interest-rate differentials, speculation that the Bank of Japan will be slow to normalise policy, and renewed fiscal boost from the government. USD/JPY eased following the remarks, as traders reassessed the risk of stronger official pushback should yen weakness accelerate.Katayama also said she had outlined Japan’s position on China’s export controls during meetings in Washington, highlighting the broader geopolitical and trade backdrop against which currency discussions are taking place. While she stopped short of signalling imminent market action, the emphasis on “one-sided” moves echoed language historically used by Japanese authorities ahead of more forceful intervention.The yen has been under persistent pressure in recent weeks, weighed down by softer domestic wage data and growing doubts over the timing of further BOJ tightening. However, officials have repeatedly warned that rapid depreciation risks damaging household purchasing power and corporate cost structures, making FX stability a political as well as economic priority.For markets, the takeaway was not a shift in Japan’s underlying policy stance, but a reminder that tolerance for yen weakness is not unlimited. With USD/JPY trading near multi-month highs prior to the comments, Katayama’s remarks served to reintroduce two-way risk into the currency, reinforcing the view that verbal and, if necessary, direct intervention remains firmly on the table. This article was written by Eamonn Sheridan at investinglive.com.