Katayama and Bessent Discuss Yen Decline in Online Talks

Japanese Finance Minister Katayama held an online meeting with U.S. Treasury Secretary Scott Bessent late Monday to discuss the yen's sharp decline, local broadcaster TBS reported, citing people familiar with the matter.

The talks come as the yen has fallen to levels not seen in decades against the dollar, pressured by the wide interest rate gap between Japan and the U.S. The Bank of Japan has kept its benchmark rate near zero while the Federal Reserve raised rates aggressively to combat inflation, making the dollar a magnet for yield-seeking capital.

Tokyo has historically intervened in the currency market when the yen weakens rapidly. The government spent roughly $60 billion in 2022 to support the yen after it breached 150 per dollar. The yen again tested that level earlier this year, though the pace of decline has moderated since.

The meeting between Katayama and Bessent suggests the two sides are coordinating their approach to the yen's slide, according to market participants. Such communication is routine but can signal that Tokyo is weighing fresh intervention or tightening its verbal warnings. No immediate statement was issued after the talks, TBS reported.