Japan and US Agree on Continued Coordination to Ensure Yen Stability

Japanese Finance Minister Satsuki Katayama stated that Japan and the United States have agreed on the importance of continuous coordination to ensure controlled yen exchange rate movements and to maintain global financial stability.

Katayama met with US Treasury Secretary Scott Bessent on Monday (31/8) on the sidelines of the G20 finance ministers and central bank governors meeting in Asheville, North Carolina.

“We reaffirmed that a controlled yen exchange rate is vital for the stability of global financial markets, including in the United States, and that ongoing coordinated efforts between Japan and the US contribute to achieving this common goal,” Katayama told reporters following the meeting.

The two officials also reaffirmed the importance of the recent joint foreign exchange market interventions conducted by Japan and the US.

These purchase interventions were carried out on 31 July, after the yen weakened to a 40-year low, approaching 164 against the US dollar.

Japan spent 15.4 trillion yen (approximately Rp1.7 quadrillion), the highest figure in history, between late July and August to support the currency, according to data released by the Japanese Ministry of Finance last week.

While the move was initially intended to strengthen the yen, the Japanese currency subsequently erased all its gains and weakened again, surpassing the important psychological level of 160 yen per US dollar by the end of last weekend.

Ahead of the meeting, Bessent anticipated that the Japanese Government and the Bank of Japan would take further steps that could encourage the strengthening of the yen.

However, a senior official from the Japanese Ministry of Finance noted that Bessent did not make any specific requests during the meeting, which lasted approximately 30 minutes, according to Kyodo News.