Japan and the United States agreed Tuesday to closely communicate on currency movements, a senior Finance Ministry official said a day after the yen tumbled to its lowest level against the U.S. dollar in more than six years.
In a meeting in Tokyo, Masato Kanda, vice finance minister for international affairs, and Andy Baukol, acting Treasury undersecretary for international affairs, also affirmed close coordination in enforcing financial sanctions against Russia for its invasion of Ukraine.
Kanda said he and Baukol took “a fair amount of time” to discuss the movements in the currency market, where the dollar on Monday surged above the 125 yen threshold for the first time since August 2015. On Tuesday, the dollar took a breather and moved mostly in the upper 123 yen range.
In an apparent warning over the yen’s recent rapid depreciation, Kanda said the two shared recognition among finance ministers and central bank governors of the Group of Seven and the Group of 20 that “excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.”