Japan, US pledge close FX communication as Yen surges

MG News September 08, 2026 (MLN): Japan and the United States continue to see eye to eye on currency-market policy, with both sides committed to sustained dialogue aimed at keeping foreign exchange movements orderly. Japanese Finance Minister Satsuki Katayama made the remarks on Tuesday, according to Reuters. Her remarks came as the yen extended a sharp rally to touch a seven-month high, driven by growing expectations that the Bank of Japan will tighten policy sooner rather than later, alongside rising bets that Japanese investors may begin repatriating overseas funds. Speaking at a regular news conference, Satsuki Katayama said Tokyo's policy stance has not changed at all since the Japan-US coordinated intervention to prop up the yen in late July, signaling that authorities remain vigilant despite the currency's recent strength. She said Japan will continue to maintain close communication with the US Treasury to ensure orderly market moves, adding that she had held talks with US Treasury Secretary Scott Bessent during recent Group of 20 meetings and on other occasions. Copyright Mettis Link News