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US, Japan agree excess FX volatility undesirable, Bessent says
Key takeaways
- "I believe the fundamentals of the Japanese economy are strong and resilient, and that will be reflected in the exchange rate," he added.
- The remarks suggest Washington broadly backs Japan s recent round of yen-buying intervention aimed at propping up its sagging currency, which is inflicting pain on the Japanese economy by pushing up import costs.
- But the yen later jumped suddenly to around 156.75, stoking speculation of a "rate check", which is often a precursor to currency intervention.
US, Japan agree excess FX volatility undesirable, Bessent says By Makiko Yamazaki, Leika Kihara and Satoshi Sugiyama Tue, May 12, 2026 at 4:21 PM GMT+7 4 min read DX-Y.NYB JPY=X By Makiko Yamazaki, Leika Kihara and Satoshi Sugiyama
TOKYO, May 12 (Reuters) - The United States and Japan believe that excess volatility in the currency market is undesirable, U.S. Treasury Secretary Scott Bessent said on Tuesday, comments seen as offering some support to Tokyo s recent round of intervention to prop up the yen.
Speaking after his meeting with Prime Minister Sanae Takaichi, Bessent also said he was confident Bank of Japan Governor Kazuo Ueda will successfully guide monetary policy to avoid being behind the curve in addressing too-high inflation.
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