Tokyo – Japan’s Finance Minister Satsuki Katayama stated that she and U.S. Treasury Secretary Scott Bessent have a shared concern regarding the recent depreciation of the Japanese yen. The announcement comes after the yen reached one-year lows in trading.

Katayama described the yen's decline as a “one-sided depreciation,” signaling a degree of unease within the Japanese government about the currency’s performance. While specifics of the discussion between Katayama and Bessent were not detailed, the acknowledgment of shared concerns suggests a coordinated awareness of the potential economic implications of a weakening yen.

The yen has been under pressure recently due to a combination of factors, including the Bank of Japan's (BOJ) continued ultra-loose monetary policy, which maintains low interest rates while other major central banks are raising rates to combat inflation. This policy difference creates a divergence in investor sentiment, often leading to capital flowing out of Japan and weakening the yen. A weaker yen can benefit Japanese exporters but can also increase import costs and potentially fuel inflation within Japan.

The U.S. has historically expressed concerns about currency manipulation and unfair trade practices. Bessent’s participation in the discussion underscores the importance of the yen’s stability to the broader global economy and the close economic relationship between the United States and Japan. Further details on any specific actions or agreements resulting from the dialogue are currently unavailable.