Japan’s Nikkei share average dropped more than 1% on Monday, weighed down by a stronger yen that pressured exporters, while investors looked ahead to currency talks between Japanese and U.S. finance chiefs later this week.

The Nikkei NI225 ended 1.3% lower at 34,279.92, while the broader Topix TOPIX slipped 1.2% to 2,528.93.

“Investors bought back stocks as the Nikkei extended losses during the session, but the buy-back did not last long. But it is not like what happened earlier this month, where any drop in the index drove further sell-offs,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

“The market was not ready to become a risk-on mode yet.”

The yen USDJPY rose to a seven-month high against the dollar as shaky confidence in U.S. assets was exacerbated by U.S. President Donald Trump’s attacks on the Federal Reserve.

A stronger yen typically weighs on exporter shares by reducing the value of overseas earnings when converted back into Japanese currency.

Automakers declined, with Toyota Motor 7203 and Honda Motor 7267 slipping 2.9% and 1%, respectively. Suzuki Motor 7269 lost 3.9%.

Finance Minister Katsunobu Kato plans to visit Washington later this week, where he is expected to meet U.S. Treasury Secretary Scott Bessent for discussions on currency rates.

Shares of domestically focused companies advanced, with the railway sector LLT rising 0.86%, while the retail sector (.IRETL.T) was little changed, edging up 0.03%.

The pulp and paper sector (.IPAPR.T) rose 3.5%, making it the top performer among the Tokyo Stock Exchange’s 33 industry sub-indexes.

Oji Holdings 3861 jumped 6.68% to become the top percentage gainer in the Nikkei after the paper products maker raised its dividend payout ratio and announced a share buyback.

Nitori Holdings 9843, an operator of home interior goods stores which relies heavily on imports for materials, jumped 2.8%.