Japanese Finance Minister Katsunobu Kato expressed hope on Friday to discuss foreign exchange matters with U.S. Treasury Secretary Janet Yellen next week, building on their previous talks in April. Kato, speaking at a post-cabinet press conference, emphasized that both nations agree exchange rates should be market-driven but warned excessive volatility could destabilize economies.
The minister referenced his April meeting with Yellen in Washington, where they reaffirmed the importance of stable currency markets. “If circumstances allow, I hope to speak with Secretary Yellen again next week to continue these discussions,” Kato said. He plans to attend the upcoming G7 finance ministers’ meeting in Canada, where further dialogue is expected.
Kato’s remarks followed reports that the U.S. and South Korea addressed FX issues in trade talks earlier this month. The news triggered a surge in several Asian currencies, including the Korean won and Japanese yen, which both rose over 1%. However, Kato declined to comment on the U.S.-South Korea discussions, noting only that market movements reflected investor reactions.
The yen’s recent fluctuations have kept policymakers on alert, with Japanese authorities reiterating their stance against disorderly currency swings. Analysts suggest Tokyo may be seeking stronger U.S. support to curb excessive yen weakness, which has weighed on Japan’s import-reliant economy.
Market participants are closely watching whether the G7 talks will yield coordinated language on FX stability. The April U.S.-Japan statement had briefly eased yen selling pressure, but traders remain wary of further volatility amid divergent monetary policies between the Fed and the Bank of Japan.
As the G7 meeting approaches, Kato’s push for renewed dialogue underscores Tokyo’s concerns over sharp currency moves. The outcome could signal whether major economies will take a firmer stance on stabilizing forex markets amid global economic uncertainties.
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