Japanese Finance Minister Satsuki Katayama said on Tuesday that Japan and the United States reaffirmed their close coordination on addressing exchange-rate fluctuations, including possible currency market intervention, following her meeting in Tokyo with U.S. Treasury Secretary Scott Bessent.

Japan is suspected to have spent nearly 10 trillion yen ($63.5 billion) in a recent round of yen-buying intervention to prop up its sagging currency, which is inflicting pain on the economy by pushing up import costs.

Katayama said she confirmed with Bessent that Japan was responding to currency moves in line with a joint statement signed with the U.S. last September that allowed for foreign exchange intervention to combat excessive market volatility.

Markets Disappointed By Lack Of Strong Yen Warning

Katayama emphasised coordination, but delivered no strong warning against yen weakness in a disappointment for markets, said Akira Moroga, chief market strategist at Aozora Bank.

Japanese policymakers are wagering an endorsement from Bessent on their foray into the currency market could give their intervention some extra bite and help slow the yen's slide.

Some analysts have also speculated that Bessent might renew his calls for speedier BOJ rate hikes as a way to support the yen.

Japan has also flagged the possibility of stepping into oil futures markets as it sees ‌speculative surges in energy prices as a major driver of the yen's weakness against the dollar, but Katayama clarified on Tuesday it had taken no such step yet.