Japanese Prime Minister Shigeru Ishiba confirmed that Japan and the U.S. will delegate foreign exchange-rate matters to their finance ministers, aligning with the policy from U.S. President Donald Trump’s first term. Following his meeting with Trump, Ishiba stated that both nations would continue close discussions through their respective financial leaders.
Last month, Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent held a video conference, agreeing to cooperate on key financial issues, including currency exchange rates. Analysts had anticipated that Trump might criticize Japan over the yen’s weakness, which strengthens the U.S. dollar and makes American exports less competitive.
Japanese officials remain cautious about Trump’s potential remarks on the yen, fearing market volatility that could disrupt the nation’s fragile economic recovery. By reinforcing cooperation at the finance minister level, Japan aims to maintain stability and avoid any major fluctuations in exchange rates.
As discussions continue, investors and policymakers will monitor how the U.S.-Japan relationship evolves under Trump’s renewed leadership, particularly regarding financial policy and currency exchange.