Bessent vows 'constant and robust' US, Japan coordination on FX

By Makiko Yamazaki and Leika Kihara

TOKYO, May 12 (Reuters) - The United States and Japan support "constant and robust" coordination successful combating undesirable, excessively volatile currency moves, U.S. Treasury Secretary Scott Bessent said connected Tuesday aft gathering his Japanese counterpart successful Tokyo.

The remarks ‌suggest Washington broadly consents to Japan's caller circular of yen-buying involution aimed astatine propping up its sagging currency, which is inflicting ‌pain connected the system by pushing up import costs.

"I was pleased to reaffirm the beardown economical concern betwixt the United States and Japan," Bessent said connected X.

The comments came conscionable hours ​after Japanese Finance Minister Satsuki Katayama told reporters the 2 had reaffirmed adjacent efforts successful tackling speech complaint moves, including currency intervention.

"The level of connection and coordination betwixt our teams successful addressing undesirable, excess volatility successful currency markets continues to beryllium changeless and robust," Bessent added.

The dollar roseate to astir 157.72 yen aft Bessent's remarks, which fell abbreviated of marketplace expectations for stronger warnings connected crisp declines successful the yen, earlier dropping abruptly to 156.74 yen.

It was ‌not instantly wide if the emergence was owed to ⁠intervention.

"Markets wanted to cognize whether determination was nary alteration successful Bessent's stance connected Japan's monetary policy," said Yuji Saito, enforcement advisor to SBI FX Trade. "There was not overmuch caller for markets from Bessent's remark connected X."

JAPAN'S RESPONSE TO ⁠CURRENCY MOVES IN LINE WITH U.S. PACT

Katayama said she confirmed with Bessent that Japan was responding to currency moves successful enactment with a associated connection signed with the U.S. past September that allowed for overseas speech involution to combat excessive marketplace volatility.

"Given existent circumstances, we powerfully confirmed anew the request to proceed coordinating intimately ​on ​market moves," she said erstwhile asked whether Bessent had commented connected caller suspected currency ​intervention by Japan to enactment the yen.

"We engaged successful ‌discussions connected deepening our coordination connected assorted fronts," Katayama added, successful effect to a query whether "close coordination" meant that Washington could instrumentality the inaugural successful tackling crisp falls successful the yen.

SILENCE ON BOJ

Japanese policymakers are wagering an endorsement from Bessent connected their foray into the currency marketplace could springiness their involution immoderate other wound and assistance dilatory the yen's slide.

Some analysts person besides speculated that Bessent mightiness renew his calls for speedier BOJ complaint hikes arsenic a mode to enactment the yen.