The Japanese and U.S. finance ministers held an online meeting and reaffirmed their recognition that the yen's undervaluation is a problem. They also shared a commitment to strengthening cooperation.
The Japanese and U.S. finance ministers held an online meeting on the night of the 25th and exchanged views on developments in the financial markets. They reaffirmed that the yen's undervaluation is a problem and confirmed that Japan and the United States would further strengthen cooperation.
The Japanese and U.S. monetary authorities conducted a yen-buying intervention at the end of July, the first in about 28 years, and the ministers' meeting also indicated a stance of not ruling out coordinated intervention. Both ministers said they would follow up going forward and shared an approach that included continuing coordinated intervention.
Developments in foreign exchange rates are expected to be on the agenda at this week's Japan-U.S. summit, and the parties concerned discussed how cooperation should be pursued in light of rising long-term interest rates and market developments. Further official announcements will be needed to clarify the specific actions and timing going forward.