Japan and US finance chiefs reaffirm stance on yen volatility
Satsuki Katayama says Tokyo and Washington will keep close coordination on currency swings, cyber risks and critical-mineral supply chains.
- Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent reaffirmed their cooperation on managing foreign exchange market developments.
- The agreement is based on a prior joint statement permitting intervention to counter "excess volatility and disorderly movements" in currency rates.
- The talks suggested that the US understands Japan's recent yen-buying interventions, which were aimed at correcting the currency's sharp fall.
- US Treasury Secretary Bessent described the coordination between the two nations on addressing "undesirable, excess volatility" in currency markets as "constant and robust."
Japanese Finance Minister Satsuki Katayama said on Tuesday (May 12) that she and US Treasury Secretary Scott Bessent had reaffirmed co-operation over foreign exchange market developments during talks in Tokyo.
After the meeting, Katayama told a press conference: “We shared the view that Japan and the United States are cooperating very well” over the currency market.
Her remarks suggested that Tokyo had secured US understanding for Japan’s yen-buying and dollar-selling interventions since late April, which were aimed at correcting the yen’s sharp fall.
Katayama said the two sides also agreed to keep co-ordinating under a joint statement issued last September by Bessent and then Japanese Finance Minister Katsunobu Kato. “We agreed to continue working closely together,” she said, adding that Japan had “gained full understanding” from Washington.
The statement showed tolerance for intervention to counter “excess volatility and disorderly movements” in foreign exchange rates.
The two finance chiefs exchanged views on economic measures in both countries.
Katayama said, “(Neither of us) pointed out any problems, including on spending.”
She declined to say whether she and Bessent discussed the Bank of Japan’s monetary policy.
Tuesday’s talks were their first meeting since they held discussions in Washington in April.
The ministers also confirmed the importance of a united response to cyberattack threats against financial institutions using advanced artificial intelligence tools, including Claude Mythos, developed by US company Anthropic.
They further discussed how Japan, the United States, European countries and other like-minded nations should strengthen supply chains for key minerals, an area in which China holds an overwhelming share.
“I was pleased to reaffirm the strong economic partnership between the United States and Japan,” Bessent said in a post on X after the meeting. “The level of communication and coordination between our teams in addressing undesirable, excess volatility in currency markets continues to be constant and robust.”
Later on Tuesday, Bessent met Japanese Minister of Economy, Trade and Industry Ryosei Akazawa.
They agreed to deepen Japan-US co-operation on energy and key minerals, while reconfirming that both countries would steadily implement the agreements reached last year regarding the high-tariff measures of US President Donald Trump’s administration.
[Copyright The Jiji Press, Ltd.]
