Bessent, Kato Confirm Existing FX Views, Avoid Talking Levels

US and Japanese finance chiefs confirmed existing currency views and did not discuss foreign exchange levels during a meeting in Canada, sending the yen briefly lower as markets wound back expectations for a more aggressive stance.

Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato “reaffirmed their shared belief that exchange rates should be market determined and that, at present, the dollar-yen exchange rate reflects fundamentals,” the Treasury department said Wednesday.

Katsunobu Kato with Scott Bessent in Banff on May 21.

Photographer: Dave Chidley/AFP/Getty Images

The officials met on the sidelines of a meeting of finance ministers and central bank governors from the Group of Seven nations being held in Banff, Canada. ...