On May 12, Japanese Finance Minister Katayama met with U.S. Treasury Secretary Bessent to discuss developments in the foreign exchange market and the broader economic situation [1]. Following the meeting, Minister Katayama stated to reporters that he conveyed Japan's position that excessive fluctuations in the exchange rate could negatively impact economic and financial stability, and that Japan would respond appropriately as needed [1]. He further noted that the U.S. side expressed a certain level of understanding regarding currency coordination [1].
The meeting also addressed the recent trend of yen depreciation, with the Japanese government reiterating its commitment to closely monitor market movements and emphasizing its readiness to intervene in the market if necessary [1]. Market participants observed that the demonstration of coordinated policy between Japan and the U.S. could serve as a stabilizing factor for the yen going forward [1].
As of the morning of May 12, the foreign exchange market saw the yen trading in the lower 150 yen per U.S. dollar range, and attention remains focused on potential actions by the Ministry of Finance and the Bank of Japan [1].
CONCLUSION
The meeting between Japanese and U.S. financial leaders signaled a coordinated stance on currency policy, which market participants believe could help support the yen. Ongoing vigilance from Japanese authorities and the possibility of intervention remain key factors for the market.