Japan Finance Minister Says US Agrees on Need for Yen Stability, Denies BOJ Rate-Hike Talks

Japanese Finance Minister Satsuki Katayama said joint foreign-exchange intervention with the US helped stabilize the yen, while denying reports that she discussed further Bank of Japan rate hikes with US Treasury Secretary Scott Bessent.

Bloomberg reported on Sept. 1 that Katayama, visiting Asheville, North Carolina, for a meeting of Group of 20 finance ministers, told reporters that she and Bessent confirmed orderly moves in the yen are essential to the stability of global financial markets, including in the US.

She added that they agreed continued coordination between Japan and the US would help achieve that shared goal. Japan and the US carried out a rare joint market intervention in July to support the yen.

The yen has come under renewed pressure since then. It fell to its weakest level since the joint intervention after Federal Reserve Chair Kevin Warsh signaled a hawkish stance last week.

As the currency remains under pressure, speculation has grown that the BOJ could raise its benchmark rate again at its September meeting after Bessent recently made a series of remarks suggesting Japan needs higher interest rates.

Katayama said she did not discuss monetary policy with Bessent. NHK earlier reported, citing an interview with US Treasury Under Secretary for International Affairs Erin Brown, that Bessent separately told Katayama and BOJ Governor Kazuo Ueda that Japan's next policy move should be a rate increase.

Bessent also told CNBC on Sept. 1 that he expects the Japanese government and the BOJ to take steps that would lead to a stronger yen. He did not explicitly call for a rate hike, but the remarks were seen as signaling expectations for further BOJ tightening.