Japan’s Finance Minister Katayama said she held a two-hour meeting with US Treasury Secretary Bessent covering forex markets, financial cooperation, critical minerals and AI supply chains. She said both governments reaffirmed their commitment to close cooperation under the framework of a joint statement agreed last year, signalling that the bilateral relationship remains on an institutionalised footing despite the pointed nature of Bessent’s visit.
Beyond currency markets, Katayama said the discussions ranged into broader international cooperation on critical mineral supply chains and AI, reflecting the widening scope of the US-Japan economic relationship as both countries seek to reduce dependencies on China and secure access to materials critical for advanced technology and clean energy industries.
The confirmation of the meeting’s length and breadth suggests the two sides used the session to cover significant ground. Bessent’s visit to Tokyo, his third in just over a year as Treasury secretary, had been closely watched by markets given the backdrop of suspected large-scale yen intervention by Japan and building speculation over the timing of the next Bank of Japan rate hike. Bessent has previously expressed a preference for BOJ rate increases over currency market intervention as the appropriate mechanism for stabilising the yen, a position that puts him at odds with Tokyo’s recent approach.
The reaffirmation of last year’s joint statement indicates both parties are choosing to operate within an established diplomatic framework, maintaining the appearance of alignment even as underlying tensions over yen management and fiscal policy persist. Bessent is scheduled to leave Tokyo for Seoul on Wednesday for trade talks with Chinese counterpart He Lifeng ahead of the Trump-Xi summit.
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The confirmation of a two-hour meeting with forex explicitly on the agenda will be read by currency markets as a signal that Washington and Tokyo are actively coordinating on yen stability, adding a degree of implicit warning to yen bears. The reaffirmation of last year’s joint statement suggests both sides are working within an established framework rather than negotiating new terms, which reduces the risk of a disruptive public rupture but leaves the underlying tension over intervention versus rate hikes unresolved
