Japan and US Reaffirm Commitment to Yen Stability Coordination
Japan and the US have reaffirmed their commitment to maintaining global financial stability through continued coordination on currency movements. The agreement was reached during a meeting between Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent at the Group of 20 finance ministers and central bank governors meeting in Asheville, North Carolina.
The two officials confirmed that an orderly yen exchange rate is essential for global financial markets, including those of the United States. They also reaffirmed the significance of their countries' recent joint intervention in the foreign exchange market, which was launched on July 31 after the yen weakened to a 40-year low near 164 against the dollar.
Japan spent a record 15.4 trillion yen ($96 billion) between late July and August to support its currency. While the initial intervention strengthened the yen, it has since erased those gains and weakened beyond the psychologically important level of 160 against the dollar.