TOKYO, April 11 (Reuters) – Japan’s Finance Minister, Katsunobu Kato, announced on Friday that Japan will be proactive in its communication with the United States on foreign exchange issues. This comes after both countries agreed on the importance of stabilizing currency markets to avoid harmful volatility.
During a press conference at the Ministry of Finance, Kato explained that Japan and the US have reached a shared understanding that currency exchange rates should largely be determined by market forces. However, he emphasized that both nations are concerned about excessive volatility or erratic movements in exchange rates, which could destabilize the broader economy.
“We have agreed with the United States that exchange rates should be market-driven, but it’s crucial to avoid excessive fluctuations or disorderly movements that could negatively affect the economy,” Kato said. “With this shared perspective, Japan will take a proactive approach to ensure open and constructive communication with the United States on these matters.”
This statement highlights Japan’s commitment to addressing potential risks in global financial markets, particularly those related to foreign exchange rates, which can have widespread economic implications. Japan’s position reflects its ongoing efforts to balance market-driven forces with the need for stability in the global economy.
In the foreign exchange markets, the US dollar briefly dropped to 143.84 yen earlier on Friday, marking its lowest level since October 2024. This sudden dip in the dollar came amid concerns over global economic conditions, including the volatility of currency movements in light of recent geopolitical tensions and market reactions to economic policies in major economies.
Japan’s proactive stance in communicating with the US signals its intention to collaborate on ensuring smoother market conditions and to prevent any disorderly exchange rate movements that might harm the global economy. This cooperation is expected to be an important aspect of ongoing discussions between the two countries as they navigate global financial challenges in the months ahead.
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