Bessent calls FX volatility 'undesirable' after meeting Japan's Takaichi
US Treasury Secretary Scott Bessent met his Japanese counterpart Sanae Takaichi in Tokyo. The two ministers issued a joint message saying excessive foreign exchange volatility damages economic stability. The yen strengthened against the dollar following the comments.
The two ministers held a closed-door meeting in Tokyo on Tuesday morning that lasted about 90 minutes. No joint statement was issued afterward, but Bessent told reporters that abrupt swings in foreign-exchange markets are "undesirable" and that the two countries will maintain close consultation.
The yen strengthened by 0.9% against the dollar after the remarks, easing back to 158.40. The Japanese government had been weighing direct intervention after the yen tested the 162 threshold over the past three weeks. Finance Minister Takaichi said coordination with the Bank of Japan would continue.
Bessent's Tokyo stop is part of an Asia-Pacific diplomatic tour ahead of next week's US-China summit in Beijing led by President Donald Trump. Bessent is due to meet South Korea's finance minister in Seoul on Tuesday evening, with Hong Kong and Singapore visits planned for the weekend.
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