Yen Resumes Its Losses Amid Japanese-U.S. Coordination on the Foreign Exchange Market

The Japanese yen fell in the Asian market on Tuesday against a basket of major and minor currencies, resuming the losses it had temporarily halted yesterday against the U.S. dollar, once again approaching its four‑week low near the 160 yen per dollar barrier, amid a rise in the greenback supported by soaring U.S. Treasury yields.

The decline comes as the G20 summit activities feature intensive meetings and consultations between Japanese and American officials to explore ways to strengthen coordination, particularly regarding any potential foreign‑exchange market interventions to curb sharp moves in the yen’s price.

Japanese‑U.S. coordination on the sidelines of the G20 meeting held in the United States was reported by a senior U.S. Treasury official to Japan’s public broadcaster NHK, stating that Treasury Secretary Scott Peters met with Bank of Japan Governor Kazuo Ueda on Sunday, followed by a meeting with Japanese Finance Minister Satō Katayama on Monday.

According to NHK, citing Irene Brown, the U.S. Treasury’s Assistant Secretary for International Affairs, Peters urged Japan during the talks to move forward with raising interest rates and to provide the markets with a clear roadmap on how to achieve fiscal sustainability.

In remarks reflecting his expectation of a stronger yen, Treasury Secretary Scott Peters told CNBC on the sidelines of the G20 Finance Leaders’ Meeting in Asheville, North Carolina, that he possesses information not yet available to the markets, expressing his belief that the Japanese government and the Bank of Japan will take steps to support the yen and bolster its strength.

FX News Today’s outlook on the yen: The yen continues to trade in negative territory against the U.S. dollar today, amid strong gains in long‑term U.S. Treasury yields that provide additional support to the greenback and increase pressure on the yen.