Japanese Finance Minister Satsuki Katayama has repeatedly warned of "bold actions" and "firm" responses to "excessive" yen volatility as it approaches the 160 per dollar mark. Now she reveals she has spoken with Bessent about currencies and the two agreed to remain in close contact.
She also said that she will take strong actions on FX if necessary.
There is an alignment of interests here between the US and Japan. The Trump administration wants a weaker dollar for export competitiveness while Japan wants a stronger yen. That probably only comes into play on another test of 160 and that's looking a bit less likely now with oil prices falling and the war file improving.
That said, the pair tested 160 several times before the war so the fundamentals are what they are.
