Japan and US agree on market-driven exchange rates, no talk of controlling yen

From Yahoo Finance: 2025-04-24 15:03:00

Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent agree to continue dialogue on currency policy but did not discuss setting targets or frameworks for controlling yen movements. G7 nations agree that exchange rates should be market-driven, but recent yen moves were not deemed excessive. No criticism was received for weak yen or currency manipulation accusations. The U.S. Treasury Department did not issue a statement following the meeting. President Trump’s focus on trade deficit has led to expectations for Japan to strengthen the yen against the dollar, resulting in a 9% increase in the yen’s value since January. The thorny issue of currency rates has been set aside for separate bilateral talks on tariffs between the two countries. Japanese policymakers see little scope for direct action such as currency intervention or immediate interest rate hikes. The Bank of Japan is cautious about raising rates amid threats of Trump’s tariffs. BOJ Governor Kazuo Ueda emphasizes the focus on achieving the 2% inflation target. The meeting between Kato and Bessent will be followed by a visit from Japan’s top trade negotiator for further bilateral trade talks.



Read more at Yahoo Finance: Japan says no talk of currency target, yen control in finance dialogue with US