U.S. Signals Support for Japan’s Yen Stabilization Efforts

The United States and Japan agree that excessive volatility in currency markets is undesirable, US Treasury Secretary Scott Bessent said, comments interpreted as indirect support for Tokyo’s recent intervention to strengthen the yen, Reuters reported.

The US and Japan have reaffirmed close cooperation on exchange-rate issues.

Speaking after meeting Japanese Prime Minister Sanae Takaichi, Bessent said he was confident Kazuo Ueda would successfully guide monetary policy to prevent inflation from getting out of control.

“We both believe that excess volatility is undesirable, and we have been in close contact with the Ministry of Finance,” Bessent told reporters.

“I believe the fundamentals of the Japanese economy are strong and resilient, and that will be reflected in the exchange rate,” he added.

The remarks suggest Washington broadly supports Japan’s recent yen-buying interventions aimed at stabilizing the currency and limiting higher import costs.

The comments came hours after Japanese Finance Minister Satsuki Katayama said she and Bessent had reaffirmed close cooperation on exchange-rate issues, including intervention measures.