The Japanese yen rose in Asian trading on Tuesday against a basket of major and minor currencies, rebounding from a three-week low against the US dollar and heading toward its first gain in eight sessions, ahead of the much-anticipated summit between newly appointed Prime Minister Sanae Takaichi and US President Donald Trump in Tokyo.

The talks are expected to focus on strengthening economic cooperation between the two countries, especially after the recent trade agreement that paved the way for a new phase of strategic partnership between Japan and the United States.

The Bank of Japan is also expected to discuss on Wednesday whether conditions are suitable to resume rate hikes as concerns over tariff-induced recession continue to fade.

Price Overview

USD/JPY fell 0.45% to 152.16, down from the opening level of 152.87, after hitting an intraday high of 152.87.

The yen closed Monday flat against the dollar after touching a three-week low of 153.26 earlier in the session. It had declined 0.2% on Friday, marking its sixth consecutive daily loss the longest losing streak since early October.

TakaichiTrump Summit

US President Donald Trump began his official visit to Japan on Monday and will hold a summit later today with Prime Minister Sanae Takaichi to discuss ways to boost economic and trade cooperation between the two nations.

The leaders are expected to address a wide range of regional and global issues of mutual concern, including relations with China, security in the Indo-Pacific, and the future of global supply chains.

The visit underscores both sides efforts to strengthen their strategic partnership and promote stability and growth across the Asian region.

Stimulative Remarks

Japans new economy minister, Minoru Kiuchi, said on Tuesday that a weak yen has benefits for the economy and that its negative effects can be mitigated through swift measures to ease rising living costs. He added that the new administrations top priority is to accelerate economic growth so that its benefits can be shared more broadly among the population.

These comments highlight Prime Minister Takaichis focus on reviving the economy through expansionary fiscal policy in contrast with the previous governments emphasis on containing inflation risks from yen weakness.

Bank of Japan

The Bank of Japan meets on Wednesday to discuss monetary policy for the worlds fourth-largest economy, with its decision due Thursday. Markets broadly expect rates to remain unchanged for the sixth consecutive meeting.

The central bank is likely to debate whether conditions are ripe to resume interest rate hikes as fears of a tariff-related slowdown ease.

Prime Minister Takaichi has called on the BOJ to cooperate in achieving inflation driven more by wage growth than import costs.

Economic Developments

Moodys on Monday affirmed Japans sovereign credit rating at A1, citing higher tax revenues supported by resilient domestic demand and robust nominal GDP growth.

However, the International Monetary Fund cautioned that any new spending should be targeted and temporary. Krishna Srinivasan, the IMFs Asia-Pacific director, told Reuters that Japans economy is expected to return to potential growth and that there is no need for additional stimulus.