The Japanese yen continues to hold its ground against the US dollar, though the struggle remains intense. According to Reuters, Washington is unlikely to persuade Tokyo to push for a stronger yen. This topic is expected to dominate the upcoming meeting between US Treasury Secretary Scott Bessent and his Japanese counterpart, Japanese Finance Minister Katsunobu Kato.

Analysts expect the Trump administration to put pressure on Tokyo, urging Japanese authorities to allow the yen to appreciate. However, Japan has anticipated this move and remains unwilling to go along. The Japanese government is likely to push back against any calls to strengthen the yen, so the upcoming Bessent-Kato talks may fall short of market expectations. Much, however, will depend on the specific demands brought by the White House. Notably, Japanese officials have noted that they have not yet received any formal requests from the United States.

President Trump has repeatedly criticized Tokyo for allegedly keeping the yen artificially weak. Currently, the yen has rallied to a seven-month high against the dollar, driven in part by a broad-based decline in the greenback. Japanese policymakers currently have little room to maneuver on exchange rates. Officials remain reluctant to take further steps to strengthen the yen, wary of hurting exporters amid the ongoing tariff conflict.

The Bank of Japan is also in no rush to raise interest rates, mindful that US tariffs could threaten the country’s economic recovery. Moreover, yielding to US pressure on rate hikes could compromise the independence of Japan's central bank.

Yet there is a silver lining. George Glass, the new US ambassador to Japan, is optimistic about the prospects for tariff negotiations between Washington and Tokyo, describing the current era as a "golden age" for economic and diplomatic relations between the two countries.