TOKYO (Kyodo) — The finance chiefs of Japan and the United States issued a joint statement on foreign exchange Friday following the conclusion of bilateral tariff talks, agreeing to continue close consultations on currency to ensure market stability.
In the statement, Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent confirmed that foreign exchange rates should be determined by the market, adding, “Excess volatility and disorderly movements in exchange rates can have adverse implications.”
Kato and Bessent agreed that intervention should be reserved for combating volatility as well as “disorderly depreciation or appreciation.”
“It was very meaningful that we were able to reaffirm the importance of transparent currency policies along with the shared understandings between Japan and the United States,” Kato said at a news conference after releasing the document.
The statement came after U.S. President Donald Trump signed an executive order on Sept. 4 formally implementing a trade deal that his administration struck with Japan in July.
While the countries’ negotiators continued tariff negotiations, Kato and Bessent also held several meetings on foreign exchange issues.
Trump, who is seeking to reduce the U.S. trade deficit, has taken issue with the dollar’s strength and accused Japan of intentionally weakening the yen, a claim Tokyo has denied.
The finance chiefs also reconfirmed that fiscal and monetary policies will not target exchange rates for competitive purposes, as agreed by the Group of Seven countries, according to the statement.
