Kato: U.S. Made No Demands on Exchange Rate in Bilateral Meeting; Ministers Agreed Rates to Be Set by Market

By Shinnosuke Kurama and Masaomi Shimosato / Yomiuri Shimbun Staff Writers

16:20 JST, April 25, 2025

WASHINGTON — The Japanese and U.S. finance ministers agreed that exchange rates are to be determined by the market, and the United States did not request that a target be set for the yen-dollar exchange rate, as the Japanese side had feared he might, at their meeting on Thursday.

Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent met in Washington.

The Japan-U.S. bilateral meeting lasted about 50 minutes. During their discussion of foreign exchange, they reaffirmed that exchange rates are to be determined by the market and that excessive volatility and chaotic movements have a negative impact on economic and financial stability.

In connection with the Japan-U.S. trade negotiations, they agreed to continued close cooperation and further constructive discussions on exchange rates. They did not discuss setting a target for the exchange rate or establishing a framework for controlling the rate.

In March, U.S. President Donald Trump criticized Japan, saying that the United States would be at a very unfair disadvantage if Japan and China devalued their currencies. On Sunday, he put currency manipulation at the top of his “nontariff cheating” list. Japan was therefore wary that the United States might make some currency-related demands.

At the meeting, Kato also mentioned the U.S. tariff measures, saying, “They are extremely regrettable. We strongly request a review. We have concerns about their consistency with the Trade Agreement Between Japan and The United States [reached in 2019].”

He also explained to Bessent various Japanese domestic economic trends, including inflation and the growing push to raise wages.

They discussed various bilateral issues.

“The discussions were productive,” Kato said at a press conference following the meeting.