Japan said it had received “full understanding” from US Treasury secretary Scott Bessent on its approach to currency markets after mounting pressure from Donald Trump’s administration over the weak yen and repeated interventions in exchange markets.
Finance minister Satsuki Katayama said she and Bessent had “discussed market developments, including moves in the exchange rate”.
“We agreed that we are co-ordinating extremely well on recent market moves, including exchange rates,” Katayama told a press conference on Tuesday after the 25-minute meeting.
Bessent wrote on X that “communication and co-ordination . . . in addressing undesirable, excess volatility in currency markets continues to be constant and robust”.
Following a meeting with Japan’s Prime Minister Sanae Takaichi later on Tuesday, Bessent said the two had discussed the importance of the US-Japan relationship ahead of President Donald Trump’s summit with China’s Xi Jinping this week. Bessent will travel to South Korea on Wednesday where he will meet Chinese economic tsar He Lifeng before joining Trump in Beijing.
The yen weakened about 0.3 per cent against the dollar to ¥157.67 on Tuesday morning before jumping sharply in late afternoon and then falling back — a move that traders said could have signalled a “rate check” by the authorities on the prospect of more intervention.