Japan-U.S. Finance Ministers' Meeting Focuses on Exchange Rates, Emphasizing Continued Close Cooperation

Central News Agency

(Central News Agency reporter Dai Yazhen, Tokyo 12th exclusive report) U.S. Treasury Secretary Scott Bessent held talks today with Japanese Finance Minister Satsuki Katayama. The two sides exchanged views on recent exchange rate fluctuations and financial market conditions. After the meeting, Bessent stated that both Japan and the U.S. believe that "excessive volatility in the foreign exchange market is not ideal" and emphasized that the two sides will continue to cooperate closely in the future.

Against the backdrop of rising tensions in the Middle East and the continued depreciation of the Japanese yen, the yen's exchange rate against the U.S. dollar once fell below 160 yen at the end of April. The Japanese government subsequently intervened in the foreign exchange market, pushing the yen to sharply appreciate to the 155 yen range.

NHK reported that Katayama stated at a post-meeting press conference that both sides confirmed that Japan and the U.S. "maintain very close cooperation" on recent exchange rate issues, and also reconfirmed that they will continue to cooperate in the future in accordance with the Japan-U.S. Finance Ministers' Joint Statement released in September last year. She also explicitly stated, "The U.S. side fully understands this."

Bessent, on the other hand, stated that neither Japan nor the U.S. wants excessive exchange rate fluctuations, and said that they have maintained close cooperation with the Japanese Ministry of Finance in the past, and "will continue to cooperate closely in the future."

Regarding market concerns about whether the Japanese government might intervene in the foreign exchange market again, Bessent did not comment directly, but emphasized that "Japan's economic fundamentals are solid and resilient," and stated that this will be reflected in exchange rate performance.

In addition, the recent rise in Japanese government bond yields has raised concerns about the stability of the financial market. Bessent pointed out that global bond yields have generally risen, and the market currently reflects expectations of short-term inflation, but he believes that "this should only be a temporary phenomenon."

Regarding the "passive" risk in the Bank of Japan's monetary policy, Bessent expressed support for BOJ Governor Kazuo Ueda, saying that the two have known each other for more than 15 years, and "have deep confidence in his successful promotion of monetary policy."

Bessent also posted a photo with Katayama on social media X and wrote, "It was a pleasure to reaffirm the solid economic partnership between Japan and the U.S. Our communication and cooperation in addressing unnecessary and excessive volatility in the foreign exchange market will remain steadfast in the future." (Edited by Tian Ruihua) 1150512