US, Japan Reaffirm Commitment To Market-Determined Exchange Rates
The United States and Japan have reaffirmed their commitment to keeping foreign exchange rates market-determined, while agreeing that excess volatility and disorderly movements are undesirable.
In a joint statement issued on Friday, the US Treasury Department and Japan’s Ministry of Finance said foreign exchange interventions should only be used to address excessive volatility and disorderly movements.
“As trusted partners, the United States Department of the Treasury and the Japanese Ministry of Finance agreed to continue their close consultations on macroeconomic and foreign exchange matters,” the statement said.
Japan’s Finance Minister Katsunobu Kato told reporters in Tokyo that the statement reflected his discussions with US Treasury Secretary Scott Bessent.
The announcement follows a joint statement earlier this month clarifying tariff deal details. Under that agreement, Washington will reduce tariffs to 15% on certain Japanese imports in return for Japan’s US$550 billion investment package for the US, which includes government-backed loans and guarantees.
Reuters
