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:

usdyen kato bessent 20 May 2025 2
Source: Forex Live