Japan, US pledge close FX communication as Yen surges

Japan and the United States remain aligned on currency policy and have pledged ongoing dialogue aimed at keeping exchange rate swings in check, Mettis Link News reported. Japanese Finance Minister Satsuki Katayama made the comments at a regular news conference on Tuesday, according to Reuters. The timing coincided with the yen climbing to a seven-month peak.

Katayama indicated that Tokyo's position is unchanged since the joint Japan-US intervention in late July that supported the yen, and officials remain watchful despite the currency's recent gains. Market expectations of an earlier tightening move by the Bank of Japan, together with bets that Japanese investors could bring money home from abroad, have helped fuel the yen's advance.

Katayama added that Tokyo will stay in regular contact with the US Treasury so that market movements remain orderly. She noted that she has held discussions with Treasury Secretary Scott Bessent at recent Group of 20 gatherings and on other occasions.