Key facts
- Japanese Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent held talks.
- Both officials expressed shared concerns about the yen's recent depreciation.
- They agreed to maintain close communication and coordination on foreign exchange policy.
- Japan's authorities are prepared to take bold action, including potential intervention, to support the yen.
- The yen strengthened following reports of these discussions.
The yen experienced a rapid increase after reports emerged that Japanese Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent held discussions regarding foreign exchange issues. Both officials confirmed they shared concerns over the yen's recent "one-sided depreciation" and agreed to enhance their coordination on currency policy. Katayama indicated that Japanese authorities are ready to implement "bold" actions, a phrase previously associated with currency market intervention, to counter excessive volatility. This readiness is based on a Japan-U.S. agreement from September that allows for intervention to address significant currency swings. The yen has been under pressure, hovering around the ¥160 per dollar mark, a level that previously prompted intervention in the summer of 2024. Deputy Chief Cabinet Secretary Masanao Ozaki also issued a warning about potential government action against excessive currency movements. The discussions between Katayama and Bessent occurred on the sidelines of a multilateral meeting on critical mineral supply chains, with Bessent scheduled to visit Japan before heading to China. Earlier interventions by Japanese authorities in late April aimed to curb the yen's slide against the dollar amidst the Iran conflict.