U.S. Treasury Chief Backs Action to Address Weak Yen

Asheville, North Carolina, Sept. 1 (Jiji Press)–U.S. Treasury Secretary Scott Bessent told Bank of Japan Governor Kazuo Ueda that he supports actions by Japanese authorities to tackle the undervaluation of the yen, the Treasury Department said Tuesday. In talks with Ueda on Sunday on the sidelines of a meeting of the Group of 20 finance ministers and central bank chiefs in Asheville, North Carolina, Bessent “expressed strong support for Japan’s decisive market and monetary steps to address the substantial undervaluation of the yen,” according to the department. He also “emphasized the importance of sound formulation and communication of monetary policy to anchor inflation expectations and avoid excess exchange rate volatility.” Bessent stressed the importance of close coordination between Japan and the United States, while noting “the role of yen weakness in contributing to domestic inflationary pressures in Japan.” In a post on X, formerly Twitter, Bessent said that he and Ueda discussed topics such as the strength of the Japan-U.S. alliance, shared macroeconomic and financial priorities and Japan’s monetary policy normalization. In Tokyo interdealer trading Tuesday, the yield on the most recent 10-year Japanese government bond issue, regarded as the country’s key long-term interest rate, rose to a 30-year high of 3.005 pct. Regarding the rise, Bessent told reporters Tuesday that Japanese authorities were taking the right measures. END [Copyright The Jiji Press, Ltd.]