Japan's Katayama, US Treasury's Bessent hold online talks to discuss yen, TBS reports

Japanese Finance Minister Satsuki Katayama engaged in online discussions with U.S. Treasury Secretary Scott Bessent late Monday, addressing the yen's significant depreciation. The meeting, reported by local broadcaster TBS, focused on policy measures to counter the weak yen.

Sources familiar with the matter indicated that the talks explored potential responses, including the possibility of currency intervention. The yen has been under pressure, recently trading around 161.9 against the dollar, nearing a two-year low. A further weakening past 161.96 would mark its lowest level since 1986.

This discussion highlights Japan's concerns about the yen's rapid decline and its potential impact on the economy. Earlier this year, Tokyo undertook substantial intervention in foreign exchange markets, spending a record 11.7 trillion yen ($72.44 billion) between late April and early May to support the currency.

The dialogue between the Japanese Finance Minister and the U.S. Treasury Secretary underscores the international attention on the yen's performance and the coordinated efforts or discussions that may be necessary to manage currency fluctuations. The U.S. Treasury's involvement signals the global implications of such significant currency movements.