Group 1 - The Japanese Finance Minister, Kato Katsunobu, stated that efforts will continue to reach an agreement beneficial to both countries [1] - There are currently no plans for specific foreign exchange negotiations with Bessent [1]

Group 1 - South Korea is currently in ongoing foreign exchange negotiations with the United States and has not made any decisions yet [1]

Core Viewpoint - The U.S. may pressure Japan to either accept high tariffs or cooperate in driving up the yen's value, as part of a strategy to reduce the trade deficit and lower tariffs [1][2][3] Group 1: U.S.-Japan Negotiations - Japan's Finance Minister will negotiate with U.S. officials regarding foreign exchange issues, with previous discussions indicating Japan's reluctance to make significant concessions [1] - The U.S. aims to link foreign exchange negotiations with tariff discussions, potentially pressuring Japan to make concessions [2][3] Group 2: Economic Implications - A potential rise in the yen could lead to a decrease in Japan's GDP by 0.67% to 1.41% over two years, posing significant economic risks for Japan [2][7] - The U.S. administration's goal is to reduce the trade deficit, utilizing tariffs and a weaker dollar as tools to enhance U.S. export competitiveness [3][6] Group 3: Historical Context and Risks - Historical precedents, such as the Plaza Accord, show that coordinated efforts to devalue the dollar can lead to economic instability, raising concerns about the current strategy [5][8] - The actual effective exchange rate (REER) of the dollar indicates a strong dollar, which could hinder U.S. export competitiveness if not addressed [8]