Japan's Finance Minister Emphasizes U.S. Coordination on Forex Stability

Japan’s Finance Minister Katsunobu Kato stressed the importance of close communication with U.S. Treasury Secretary Scott Bessent to ensure stability in foreign exchange markets. Speaking in parliament on Monday, Kato highlighted the significance of bilateral dialogue, especially as concerns rise over the potential impact of U.S. inflation driven by President Donald Trump’s aggressive tariff policies.

Kato emphasized that Japan and the United States share a consensus that exchange rates should be market-driven. He noted that both sides agree excessive or disorderly currency movements can harm economic and financial stability. “Based on this consensus, we would proactively communicate with the United States,” he said.

His remarks come in response to Trump’s recent comments that he warned Japan and China against deliberately weakening their currencies to gain trade advantages. Despite Trump’s concerns, the Japanese yen has appreciated by around 4% against the U.S. dollar this year, and Tokyo insists it has not devalued its currency.

Kato reaffirmed Japan’s position, stating that the government would continue to coordinate closely with Washington on exchange rate issues. He added that bilateral discussions with Secretary Bessent could take place at international gatherings such as the Group of Seven (G7) finance meetings.

Kato’s commitment to dialogue reflects Japan’s efforts to maintain trust and transparency with global partners amid rising geopolitical and economic tensions. As currency markets remain sensitive to U.S. policy changes, Tokyo is positioning itself as a cooperative and stable player in global finance.

The reaffirmation of market-based currency policy and the push for steady communication with the U.S. are expected to reassure investors and contribute to long-term market stability.