Japanese Finance Minister and U.S. Treasury Secretary Discuss Exchange Rates

By Leika Kihara

WASHINGTON (Reuters) – Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Janet Yellen held a bilateral meeting on Thursday concerning recent exchange-rate movements, according to a senior Japanese finance ministry official.

Atsushi Mimura, Japan's vice finance minister for international affairs, stated, "The two sides discussed exchange-rate moves, and confirmed the need for the United States and Japan to communicate closely."

A declining yen has raised concerns among Japanese policymakers as it increases costs for households and retailers due to higher raw material import expenses.

Mimura remarked, "We have recently seen one-sided, sharp moves in currency rates… It's desirable for exchange rates to move in a way that reflects fundamentals. We will be increasingly vigilant to currency moves, including those driven by speculation," he said during the G20 and IMF meetings in Washington.

On Wednesday, the dollar surpassed 153 yen for the first time in nearly three months due to decreasing expectations of substantial interest rate cuts by the Federal Reserve, emphasizing the significant rate divergence between the U.S. and Japan. As of Thursday, the dollar was valued at 151.83 yen.