By Megumi Fujikawa
TOKYO--The U.S. and Japan have reaffirmed their commitment to working closely together to monitor the currency market, Japan's finance minister said after meeting with Treasury Secretary Scott Bessent.
"We discussed financial market movements, including foreign exchange rates, in light of the situation in the Middle East. Regarding recent currency moves, we confirmed that Japan and the U.S. have been able to coordinate very well," Finance Minister Satsuki Katayama said at a news conference.
Katayama said that at her meeting with Bessent in Tokyo, the two countries reiterated that they are acting in accordance with a joint statement issued last year that explicitly mentions the option of currency intervention.
The meeting comes as currency traders remain on guard against further potential Japanese government intervention to prop up the yen, which has come under renewed pressure as the Middle East conflict spurs haven demand for the dollar.
The government likely intervened in the foreign-exchange market during the nation's Golden Week holidays that spanned from late April to early May.
Market estimates show that authorities might have spent about 10 trillion yen, equivalent to $63.60 billion, sending the yen briefly back to 155 to the dollar.
In January, when the dollar appreciated sharply against the yen, Bessent led so-called rate checks--seen as the preliminary step before actual intervention. The move raised speculation over the possibility of joint action between Washington and Tokyo, helping to temper some of the excessive movements in the foreign-exchange market.
Katayama declined to disclose whether she discussed the Bank of Japan's monetary policy with Bessent on Tuesday. Many investors and economists expect the central bank to tighten policy settings at its next meeting in June.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
05-11-26 2155ET
