Japanese Prime Minister Shigeru Ishiba is expected to appoint Economy Minister Ryosei Akazawa as the country's trade negotiator with the United States, according to a report by FNN television on Tuesday. However, Akazawa mentioned during a press conference that he has not been informed about the nomination by the prime minister.

This development follows a telephone discussion between Ishiba and U.S. President Donald Trump, where they agreed to launch bilateral talks on tariffs. Trump has assigned Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer to lead the trade negotiations with Japan.

Akazawa remarked that appointing the treasury secretary as the lead for trade discussions with Japan suggests the U.S. government's keen interest in the areas he oversees. Meanwhile, discussions concerning exchange rate movements will continue to be handled by Japan's finance minister and the U.S. treasury secretary, as announced by Japanese Finance Minister Katsunobu Kato in a separate press briefing on Tuesday.

The designation of Bessent as the U.S. trade talks head with Japan has generated speculation among certain investors that Washington might push Tokyo to assist in weakening the dollar compared to the yen, potentially as part of an agreement to reduce U.S. tariffs on Japan.

A softened dollar could benefit U.S. exports, while a stronger yen could help alleviate the increasing import expenses affecting Japanese consumers. Analysts are considering the potential impact of pressure from Trump, in addition to the Japanese government's efforts to support the yen against the dollar, on the likelihood of further interest rate hikes by the Bank of Japan, according to Yasunari Ueno, chief market economist at Mizuho Securities.

In a recent ministerial meeting addressing Japan's stance on U.S. tariffs, Ishiba emphasized the need to monitor investors' actions due to volatile movements in the global financial market, as shared by Akazawa. When asked about the recent rise of the yen against the dollar, Akazawa declined to comment directly but highlighted the general trend of import prices decreasing when the yen strengthens.