Written by Leika Kihara
WASHINGTON (Reuters) – Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Janet Yellen discussed recent exchange rate movements and other issues during a bilateral meeting on Thursday, a senior Japanese Treasury official said. revealed.
Atsushi Mimura, Japan’s vice-minister of finance for international affairs, told reporters, “The two countries discussed exchange rate trends and confirmed the need for close communication between Japan and the United States.”
A weaker yen is a cause for concern for Japanese policymakers, as it raises the cost of importing raw materials and hurts households and retailers.
Mimura, who oversees Japan’s monetary policy, said, “Recently, we have seen unilateral and rapid movements in exchange rates.”
“It is desirable for exchange rates to move in a manner that reflects fundamentals. We will continue to be increasingly wary of exchange rate movements, including those caused by speculation,” he said in Washington on the sidelines of G20 and IMF meetings.
The dollar rose above 153 yen for the first time in about three months on Wednesday, as expectations for a significant interest rate cut by the US Federal Reserve (Fed) receded, and the large divergence between Japanese and US interest rates drew renewed attention.
The dollar was 151.83 yen on Thursday.
(Reporting by Laika Kihara; Editing by Andrea Ricci and Jamie Freed)
