(Bloomberg) -- Japan’s Finance Minister Katsunobu Kato discussed developments in the foreign exchange market with US counterpart Janet Yellen, a day after he intensified warnings over a rapid slide in the yen.
“Recent moves in foreign exchange rates were discussed at a bilateral meeting today between Finance Minister Kato and Treasury Secretary Yellen,” Atsushi Mimura, Japan’s top currency official, told reporters in Washington on Thursday. “The two confirmed they would continue to closely communicate to exchange views.”
Japan is warning speculative traders after the yen reached almost a three month-low this week. Just before the bilateral meeting, Kato spoke to reporters and said he told Group of 20 counterparts earlier in the day that volatility in the foreign exchange market warrants attention.
Kato also highlighted G-20’s reaffirmation of its currency agreement in its latest communique. Japan has often cited the agreement to justify any currency interventions it conducts.
“Our view is that there are clearly one-sided and rapid moves,” Mimura said. “As the minister said yesterday, we are closely watching currency moves including speculative trading with a stronger urgency.”
Securing tacit agreement from the US is seen as strongly desirable if Japan decides to intervene in the market to support the yen again. Tokyo has already spent more than $100 billion propping up the currency this year.
The yen was trading at around 152 against the dollar Friday morning in Tokyo, after hitting 153.19 earlier in the week.
(Updates with more details)
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