Japan-US to base talks on past FX agreement

20/5/2025 12:36

Japanese Finance Minister Katsunobu Kato said on Tuesday he expects any bilateral meeting with U.S. Treasury Secretary Scott Bessent on exchange rates to be based on their shared view that excessive currency volatility was undesirable.



"In our previous meeting, we confirmed that exchange rates should be set by markets, and that excessive volatility in currency moves has an adverse economic and financial impact," Kato told a news conference.



"I expect any meeting with the U.S. Treasury Secretary to be based on this understanding," he said, adding that he hoped to exchange views on various bilateral themes including currency policy.



Kato and Bessent are expected to hold a bilateral meeting on the sidelines of a G7 finance leaders' gathering to be held this week in Canada.



Kato also said Japan was scrutinising the impact on its economy and markets from Moody's decision last week to downgrade the credit rating of the United States.