Japan finance minister Kato hints at plans to speak with Bessent on FX this week

Japan finance minister Kato:

• Will hold bilateral meetings with counterparts at G7 finance leaders’ meeting later this week
• Expect to discuss various topics, including FX, if I were to meet Bessent on sidelines of G7 gathering
• Will scrutinise impact of U.S. fiscal, monetary policy on Japan’s economy, when asked about Moody’s downgrade of US debt rating
• In previous bilateral meeting with Bessent, two sides confirmed FX rates should be set by markets and that excess volatility in FX market has adverse impact on economy
• Expect any talks with Bessent this week to be based on this understanding on FX

After its sharp rally USD/JPY just as quickly down again:

This article was written by Eamonn Sheridan at www.forexlive.com.