US Treasury Secretary Bessent meets Japan’s Takaichi Tuesday to discuss yen stability and economic security

US Treasury Secretary Scott Bessent is meeting with Japanese Prime Minister Sanae Takaichi on Tuesday at 4 PM to talk about currency markets, economic security, and the broader trajectory of the US-Japan relationship.

Japan has been actively intervening to prop up the yen against the US dollar in recent weeks, pushing the exchange rate from above 160 down to around 152 since April.

What’s on the table in Tokyo

The meeting’s agenda covers yen stability, economic security, rare earth supply chains, and energy procurement.

Bessent has publicly affirmed the importance of cooperation on currency stability following Japan’s recent interventions to counter speculative selling of the yen. Japan has positioned itself as a leader in energy finance, and both countries have signaled interest in investment screening frameworks similar to CFIUS, the Committee on Foreign Investment in the United States.

The yen intervention backdrop

Since April, the Japanese currency has strengthened against the dollar, moving from levels above 160 to around 152. Speculative selling had been hammering the yen for months, driven by the interest rate differential between the US and Japan. Japan’s response was to step into the market directly, buying yen and selling dollars to arrest the slide.

Bessent’s broader Asia agenda

The Japan stop is part of a larger Asian itinerary for Bessent, which also includes a visit to China.

Bessent’s schedule in Tokyo extends beyond the meeting with Takaichi. He is also set to hold individual discussions with Finance Minister Satsuki Katayama and Bank of Japan Governor Kazuo Ueda.

Notably, there appears to be no focus on crypto assets or digital currencies in these discussions.

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