The finance ministers of Japan and the United States met on the sidelines of the G20 to address the persistent weakness of the yen. Japanese Finance Minister Satsuki Katayama held talks with US Treasury Secretary Scott Bessent on Monday in Asheville, North Carolina, the venue for the two-day G20 meeting of finance ministers and central bank governors. Bank of Japan Governor Kazuo Ueda also met with Bessent. The discussions came one month after the two countries jointly intervened in the foreign exchange market to support the yen, a rare move. Although the agenda and outcomes of the talks were not officially disclosed, it is expected that the three agreed that the excessive depreciation of the yen is detrimental to both economies. Earlier, Bessent told CNBC that he expects Japan to take additional measures and believes that the Japanese government and the BOJ will implement measures that lead to a stronger yen, noting that market players have already priced in expectations of a BOJ rate hike.
Expectations of BOJ rate hike and joint intervention support yen, likely leading to higher Japanese bond yields.
