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16/04/26
26
Japan and U.S. Discuss Foreign-Exchange Stability as Yen Pressure Persists
Japan’s Finance Minister Satsuki Katayama said she held discussions with U.S. Treasury Secretary Scott Bessent on foreign-exchange developments, with both sides agreeing to maintain close contact. The remarks come at a time when currency markets remain sensitive to shifts in policy expectations, especially as the yen has faced sustained pressure against the dollar.
Katayama said Japan has been informing G7 partners that it is closely monitoring foreign-exchange movements. She also noted that volatility in oil futures can influence currency markets and, by extension, household finances and broader economic conditions. The message underscored Tokyo’s view that swings in energy prices and exchange rates are increasingly interconnected.
When asked whether Bank of Japan monetary policy was discussed during the meeting with Bessent, Katayama said she was not aware of any such discussion. Her comments suggested that the talks were focused primarily on foreign-exchange stability rather than on the direction of domestic monetary policy.
Katayama described the global backdrop as unusually uncertain, saying many G7 members are pointing to elevated levels of ambiguity and that it may take weeks before there is greater clarity. She added that many overseas financial leaders appear to be taking a wait-and-see approach, while central bankers have been cautious about raising rates because tighter policy could weigh on growth.
She said it is difficult to predict when the current period of uncertainty will end or how far its effects may spread through the economy. The comments reflect a broader concern among policymakers that persistent market volatility could complicate both inflation management and economic recovery.
In the foreign-exchange market, the dollar-yen pair was last down 0.12% on the day at 158.80, suggesting only a modest immediate reaction to the remarks. Still, the pair remains close to levels that keep authorities alert to the risk of abrupt moves and possible intervention.
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