Japan: Finance minister says FX intervention coordinated with US

Japan’s Finance Minister Satsuki Katayama told reporters after a Tokyo meeting with U.S. Treasury Secretary Scott Bessent that Japan and the United States reaffirmed close cooperation on exchange-rate moves and potential currency intervention. Katayama said both sides discussed market developments and confirmed they are coordinating closely amid recent volatility.

The meeting reflected action within the framework of a joint U.S.-Japan statement signed in September 2025, under which the two sides agreed to consult on macroeconomic and foreign exchange issues. The U.S. Treasury’s readout confirmed Bessent met Katayama in Tokyo and that both officials agreed to maintain a dialogue on exchange-rate matters.

Markets reacted to the comments with a brief easing of pressure on the yen as traders priced in a higher probability of coordinated responses to disorderly moves. USD/JPY volatility rose in recent sessions as the yen approached key technical levels, prompting speculation about yen-buying operations by Japanese authorities.

The development highlights Tokyo’s willingness to use all available tools to address excessive depreciation of the yen and the importance of U.S.-Japan cooperation in such episodes. The September joint statement provides the formal backdrop for any coordinated action, and Katayama’s remarks reinforced Tokyo’s readiness to act when necessary.

Analysts say close U.S. coordination could increase the impact of any intervention and lower the risk of market fragmentation, but they caution that sustainable yen strength likely requires policy adjustments by the Bank of Japan and changes in global interest-rate dynamics. Investors will continue to monitor USD/JPY and policy signals from Tokyo, Washington and the BOJ for clues on the next moves.