Japanese Finance Minister Katayama Satsuki told reporters in Tokyo on Friday that U.S. President Trump expressed concern about the weak yen during his meeting with Japanese Prime Minister Takaichi Sanae in New York this week.

Takaichi pointed out to Trump that the yen's undervaluation is "a problem."

Katayama said that in light of the talks, she and U.S. Treasury Secretary Scott Bessent will continue to maintain close communication on a range of matters including foreign exchange.

Katayama has been pushing for a stronger yen and has warned the market that Japanese authorities may intervene again with U.S. support to prop up the currency.

The United States and officials including Bessent supported Tokyo's $96 billion currency market intervention in July and August, a rare joint action that helped the yen rebound from a 40-year low.

Trump's focus on eliminating the U.S. trade deficit with the rest of the world has fueled his criticism of countries that gain an unfair advantage for American manufacturers through weaker currencies.

Bessent has also warned that disorderly yen moves could have a negative impact on the U.S. bond market.

The yen fell about 1% against the dollar this week and strengthened slightly on Friday to 158.33 yen per dollar.

Takaichi remains committed to plans to increase government spending, which analysts believe will put downward pressure on the yen.

Japan's benchmark 10-year government bond yield rose to 3.1% on Friday, a 30-year high.

The dollar has generally strengthened due to rising U.S. yields, with strong economic data supporting market bets on faster Federal Reserve rate hikes.

The yen's decline has pushed up inflation in Japan, deepening the pain for households.

When the yen was around 163 per dollar this summer, joint intervention temporarily pushed it up to around 155, but the yen then resumed its decline even as the Bank of Japan began hinting at faster rate hikes.

Last week, the Bank of Japan raised interest rates to the highest level in 31 years, but the move had limited effect in structurally boosting the yen, and Governor Ueda Kazuo strongly hinted at possible further tightening this year.

Although the yen has fallen back to around 160, some analysts believe it could still strengthen, especially if domestic investors begin repatriating overseas assets as domestic interest rates rise.

Osamu Takashima, a foreign exchange analyst at Citi Tokyo, said: "Japanese government bond yields... have risen to levels that domestic institutional investors may find desirable. We believe they will reduce overseas investment over time."

He expects: "The 160 to 165 range will be the long-term ceiling for the dollar against the yen, and the pair will fall to around 155 by the end of the year and to 145 by the end of next year."