TOKYO: Japanese Prime Minister ISHIBA Shigeru will nominate Economy Minister AKAZAWA Ryosei as trade negotiator with the United States, FNN television reported on Tuesday.

Akazawa, during a press conference, said he was not aware of the report and has not been approached by the prime minister on the matter.

The report emerged after Ishiba and U.S. President Donald Trump agreed to initiate bilateral discussions on tariffs in a telephone meeting on Monday.

Trump has designated Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer to oversee trade negotiations with Japan, Bessent said on social media.

“The fact the treasury secretary was appointed (to lead trade talks with Japan) may suggest the U.S. administration has a strong interest in areas he oversees,” Akazawa said.

Bilateral discussions on exchange-rate moves will continue to be managed by Japan’s finance minister and the U.S. treasury secretary, Japanese Finance Minister KATO Katsunobu said in a separate news conference on Tuesday.

Bessent’s appointment as the head of U.S. trade talks with Japan has heightened speculation among some investors that Washington may pressure Tokyo to help weaken the dollar against the yen, as part of a deal to reduce U.S. tariffs on Japan.

A weaker dollar could enhance U.S. exports, while a firmer yen might help moderate rising import costs that have hurt Japanese consumers, some analysts say.

“Pressure from Trump, coupled with the Japanese government’s intention to prop up the yen against the dollar, could have an influence on the likelihood of further interest rate hikes by the Bank of Japan,” Yasunari Ueno, chief market economist at Mizuho Securities, wrote in a research note.

The BOJ raised interest rates to 0.5% in January and its officials have signaled their readiness to hike rates further if Japan makes progress toward durably achieving its 2% inflation target, or if the risk of excessively high inflation materialises.

In a meeting with key ministers to discuss Japan’s approach on U.S. tariffs held earlier on Tuesday, Ishiba stressed the need to scrutinise investors’ behaviour due to unstable movements in the global financial market, Akazawa said.

“I won’t comment on the yen’s recent rise, though in general, import prices fall when the yen strengthens,” Akazawa said, when asked about the yen’s recent rebound against the dollar. 

Reuters