TOKYO :The United States and Japan reaffirmed their commitment to “market determined” exchange rates and agreed that excess volatility and disorderly movements in exchange rates were undesirable, according to a joint statement released on Friday.
“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,” they added in the statement.
They also agreed that foreign exchange interventions should be reserved for combatting excess volatility and disorderly movements in exchange rates.
Speaking to reporters in Tokyo, Finance Minister Katsunobu Kato said the two countries agreed to issue a joint statement on foreign exchange to reflect the discussions that he and U.S. Treasury Secretary Scott Bessent have had so far.
They chose this timing as the two countries this month published a joint statement clarifying details of their tariff deal.
The tariff negotiations with the United States have been led by Economy Minister Ryosei Akazawa, while the two countries had agreed that any discussions on currency rates have to be held between Kato and Bessent.
Under the agreement, Washington will reduce tariffs to 15 per cent on certain Japanese imports in exchange for Japan’s $550 billion U.S.-bound investment package, which includes government-backed loans and guarantees.
