Japan may have averted U.S. pressure for a stronger yen in bilateral finance talks on Thursday, but a closer look at officials¡¯ descriptions of the meeting suggests currencies and the Bank of Japan¡¯s interest rate policy may remain key factors in broader trade negotiations.

Speaking to reporters after his first face-to-face talks with U.S. Treasury Secretary Scott Bessent on Thursday, Finance Minister Katsunobu Kato said they did not discuss exchange-rate targets or a framework to manage yen rates.

There was no accusation made by the U.S. that Japan was intentionally weakening the yen, according to a Finance Ministry official who accompanied Kato.