Japan, U.S. Finance Chiefs: Exchange Rate Reflects Fundamentals; Also Discussed Tariff Talks, Security Cooperation

By Yuma Ikeshita and Hiroyuki Tanaka / Yomiuri Shimbun Staff Writers

16:17 JST, May 22, 2025

BANFF, western Canada — Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent have agreed that exchange rates should be determined by the market and that the current dollar-yen rate “reflects fundamentals,” according to the U.S. Treasury Department.

The department announced Wednesday that Bessent and Kato had met in Banff, western Canada.

The meeting took place on the sidelines of the Group of Seven finance ministers and central bank governors meeting in Banff. U.S. President Trump has expressed concern about the weaker yen and stronger dollar, which disadvantages U.S. exports, but Bessent and Kato did not discuss specific exchange rate targets, according to the U.S. Treasury Department.

Such targets were also not discussed at their previous talks on April 24.

Their latest discussions also covered ongoing tariff negotiations and security cooperation between Japan and the United States. Kato is believed to have conveyed Japan’s concerns to Bessent regarding the impact of U.S. tariff policies on the global economy and markets.