Japan and US Agree on Stable Yen Movements

Japanese Finance Minister Satsuki Katayama met with U.S. Treasury Secretary Scott Bessent in Asheville, North Carolina to discuss the yen's recent weakness. Both officials agreed that 'orderly' yen movements are essential for global financial market stability.

The meeting took place ahead of a two-day Group of 20 finance meeting, where Bank of Japan Governor Kazuo Ueda also met with Bessent. This comes after Japan and the United States conducted a rare joint currency market intervention to prop up the yen last month.

Bessent expressed concern that extreme volatility in the yen could result in higher U.S. interest rates, making borrowing more expensive for Americans. The wide interest rate gap between Japan and the United States remains a dominant driver of the yen's weakness against the dollar.