Japan says Scott Bessent offered ‘understanding’ on yen policy

{"text":[[{"start":6.95,"text":"Japan said it had received “full understanding” from US Treasury secretary Scott Bessent on its approach to currency markets after mounting pressure from Donald Trump’s administration over the weak yen and repeated interventions in exchange markets."}],[{"start":21.65,"text":"Finance minister Satsuki Katayama said she and Bessent had “discussed market developments, including moves in the exchange rate”."}],[{"start":29.75,"text":"“We agreed that we are co-ordinating extremely well on recent market moves, including exchange rates,” Katayama told a press conference on Tuesday after the 25-minute meeting."}],[{"start":40.3,"text":"Bessent wrote on X that “communication and co-ordination . . . in addressing undesirable, excess volatility in currency markets continues to be constant and robust”."}],[{"start":51.15,"text":"Following a meeting with Japan’s Prime Minister Sanae Takaichi later on Tuesday, Bessent said the two had discussed the importance of the US-Japan relationship ahead of President Donald Trump’s summit with China’s Xi Jinping this week. Bessent will travel to South Korea on Wednesday where he will meet Chinese economic tsar He Lifeng before joining Trump in Beijing."}],[{"start":72.75,"text":"The yen weakened about 0.3 per cent against the dollar to ¥157.67 on Tuesday morning before jumping sharply in late afternoon and then falling back — a move that traders said could have signalled a “rate check” by the authorities on the prospect of more intervention."}],[{"start":null,"text":"

"}],[{"start":90.15,"text":"Japan has spent an estimated $63.7bn over the past two weeks intervening in currency markets to support the yen, according to foreign exchange analysts, but the currency is now trading around levels where markets expect authorities to step in again."}],[{"start":106.4,"text":"“If the yen falls further towards the ¥158 or ¥159 level, there is still a chance of further interventions,” said Yujiro Goto, forex strategist at Nomura."}],[{"start":117.10000000000001,"text":"Bessent has expressed concern over the yen-dollar exchange rate, which the Trump administration believes unfairly favours Japanese exporters."}],[{"start":124.95,"text":"But he has suggested he would prefer the Bank of Japan to tighten monetary policy to support the yen, rather than authorities intervene directly in currency markets."}],[{"start":135.25,"text":"Rate increases are viewed by many economists as creating a deeper and longer-term currency support, and the US and Japan agreed in a joint statement in September that currency intervention should be reserved for reducing excessive market volatility."}],[{"start":150.4,"text":"Bessent told reporters that he was confident BoJ governor Kazuo Ueda would guide the central bank to “a very successful monetary policy”, but said he had not made any request to Takaichi on monetary policy. "}],[{"start":165,"text":"Katayama also declined to comment on whether she and Bessent discussed monetary policy."}],[{"start":null,"text":""}],[{"start":null,"text":""}],[{"start":170.7,"text":"Currency analysts had speculated that Tokyo would seek to use Bessent’s visit to draw out a clear US endorsement of Japan’s intervention efforts. A weak yen pushes prices higher and hits households hard in a country dependent on imported energy, food and other materials. "}],[{"start":188.1,"text":"Government figures released on Tuesday showed that Japanese household spending fell 2.9 per cent in March from a year earlier, a much steeper decline than economists had anticipated. Consumer confidence has dropped sharply following the outset of conflict in the Middle East."}],[{"start":205.04999999999998,"text":"Economists are increasingly split on whether the BoJ is likely to raise rates at its next meeting in June."}],[{"start":211.7,"text":"The central bank held rates at about 0.75 per cent at its April meeting despite hawkish pressure from three members of its policy committee, and Ueda is weighing the risks of falling behind the curve on taming inflation and concern that a prolonged war in Iran could tip Japan’s economy into recession."}],[{"start":230.25,"text":"A summary of opinions from the April policy meeting published on Tuesday revealed a split BoJ wrestling with strong arguments for a rate increase sooner rather than later."}],[{"start":239.9,"text":"The yield on Japan’s benchmark 10-year government bond rose to a 30-year high of 2.545 per cent on expectations of a possible rate rise at the June meeting."}],[{"start":258.65,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778583259_4169.mp3"}