Washington signals support for Tokyo’s yen-buying intervention amid concerns over import cost inflation and currency weakness.
The US and Japan have agreed that excessive currency volatility is undesirable, US Treasury Secretary Scott Bessent said. The remarks follow Japan’s recent yen-buying intervention to counter the currency’s decline, which has raised import costs and pressured the economy.
Bessent met with Japanese officials, including Finance Minister Satsuki Katayama, reaffirming close coordination on exchange rate movements. He expressed confidence in Bank of Japan Governor Kazuo Ueda’s ability to manage monetary policy amid persistent inflation.
The yen’s weakness has been a growing concern for Tokyo, prompting intervention to stabilize the currency. Bessent’s comments suggest broader US backing for Japan’s efforts to address the issue.