Japan, US remain aligned on FX policy to foster stable markets, Katayama says

Tokyo: Japanese Finance Minister Satsuki Katayama affirmed on Tuesday that Japan and the United States maintain a unified stance on foreign exchange policy, pledging continued coordination to safeguard market stability. Katayama emphasized during a routine press briefing that the government's approach has remained unchanged since the coordinated yen intervention in late July.

The minister noted that Tokyo remains watchful despite the currency's recent substantial gains. Japan is committed to ongoing dialogue with the U.S. Treasury to ensure smooth market operations, she stated, mentioning a recent conversation with Treasury Secretary Scott Bessent during the Group of 20 summit and other gatherings. The yen reached a seven-month peak as investors reevaluated its future prospects, fueled by anticipation of a more aggressive Bank of Japan tightening strategy and heightened speculation that Japanese entities might bring back overseas assets.