The yen is on track for its biggest gain in nearly three weeks. Japan's prime minister said a weak currency "is a problem."

The yen is on track for its biggest daily gain in almost three weeks after Japanese officials discussed the currencys weakness in a meeting with their US counterparts, fueling a rally. The yen rose as much as 1.2% on Friday to 156.98 per dollar, outperforming all its Group-of-10 peers. Japanese Prime Minister Sanae Takaichi said during a meeting with US President Donald Trump that the currencys undervaluation is a problem, making traders more alert to the risk that authorities may step in to prop up the yen. Kyodo News reported, citing Japanese Finance Minister Satsuki Katayamas remarks to reporters, that Katayama and US Treasury Secretary Scott Bessent reaffirmed during a video call on Friday that the yens undervaluation is a concern. Intervention risk should limit further yen weakness, said Moh Siong Sim, a strategist at Oversea-Chinese Banking Corp. More importantly, the yen may be nearing a turning point, as Trumps concern about yen weakness suggests deeper coordination between the US and Japan to support the yen.