US-Japan Talks Address Yen Stability, Interventions

United States Treasury Secretary Scott Bessent met with Japanese Finance Minister Satsuki Katayama and Prime Minister Sanae Takaichi in Tokyo on Tuesday to discuss yen stability amid recent currency interventions by Japanese authorities.

The talks addressed heightened volatility in the yen-dollar exchange rate, which has swung sharply in recent weeks due to interest rate differentials between the two countries and geopolitical tensions, including the conflict in the Middle East. Japan has spent an estimated 63.7 billion dollars, or up to 10 trillion yen, intervening in forex markets over the past two weeks to support the weakening yen, pushing it from above 160 per dollar in April to around 152 before it traded at about 157.60 against the dollar in Tokyo morning trading.

Bessent confirmed that the United States coordinated with Japanese authorities to counter excessive volatility and prevent disorderly market conditions that could harm trade and financial stability. Katayama told reporters that she and Bessent discussed market developments, including exchange rates, and agreed that the two sides were coordinating extremely well on recent moves. She declined to relay Bessent's...