Japanese Finance Minister Katsunobu Kato on Tuesday expressed his willingness to meet with U.S. Treasury Secretary Scott Bessent to discuss foreign exchange issues, should the opportunity arise. His comments come amid heightened market sensitivity following a preliminary tariff agreement between the United States and China.
“If we have a chance, I hope to have a meeting with Treasury Secretary Bessent to discuss forex,” Kato stated, underscoring Tokyo’s intent to maintain open dialogue on currency matters, especially as trade policy developments continue to sway global markets.
Kato also confirmed that preparations are underway for Japan’s participation in the upcoming G7 finance ministers’ meetings in Banff, Canada. He noted that if a meeting with Bessent is realized on the sidelines, the U.S.-China tariff agreement could be a topic of discussion.
While refraining from commenting on current exchange rate levels, the Finance Minister emphasized that Japan is “closely monitoring” market movements triggered by the U.S.-China tariff developments. The agreement, which temporarily eases punitive tariffs between the world’s two largest economies, has injected both relief and uncertainty into financial markets, impacting currencies like the Japanese Yen.
Market Reaction
In response to Kato’s comments and lingering concerns over trade policy, the Yen gained modestly against the U.S. Dollar. The USD/JPY pair was last seen trading down 0.34% on the day near 147.95, as traders factor in the potential for further diplomatic engagement and cautious monitoring by Japanese authorities.
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