US, Japan both believe forex volatility is undesirable – Bessent

In very close contact with Japan’s ministry of financeWe both believe forex volatility is undesirableJapan economic fundamentals are very strong and resilientThat will be reflected in the exchange rateHave great confidence in BOJ governor Ueda in guiding monetary policyMade no request to prime minister Takaichi regarding monetary policyDiscussed Trump’s visit to Beijing with Takaichi as well as importance of US-Japan relationship in that regardThis doesn’t really add much to his earlier comments here. His acknowledgement basically is a nod of approval to Japan’s intervention actions in the past two weeks. However, he doesn’t go as far as to commit to anything in saying that the US will be up for a joint intervention effort to help with the yen currency’s plight.As mentioned before, it is a sensitive topic and one that the US is not likely to get on board with:”Is it about time that Japan tries to seek help from the US for joint intervention? It’s a very touchy subject but given the circumstances and desperation, this might be one alternative.However, this starts to border on politics and it would need the US to acknowledge that the yen is being “mistreated” while also arguing that the dollar is “too strong”. I just don’t see that happening as it would require the US to take more of a dollar policy stance than being able to isolate it as a reaction to the yen and global market situation.”
This article was written by Justin Low at investinglive.com.

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