Kato and Bessent Prepare for Crucial Currency Talks

Japanese Finance Minister Katsunobu Kato anticipates discussions with U.S. Treasury Secretary Scott Bessent to focus on mitigating excessive currency volatility. They aim to uphold their view that markets should determine exchange rates. The meeting will occur during the upcoming G7 finance gathering in Canada.

Japanese Finance Minister Katsunobu Kato has set the stage for a pivotal discussion on currency exchange rates with U.S. Treasury Secretary Scott Bessent. The two leaders are expected to converse during the G7 finance ministers' meeting in Canada this week.

Kato emphasized that any talks on exchange rates should align with their shared belief in market-determined rates and the undesirability of excessive volatility. "In our previous meeting, we confirmed that exchange rates should be set by markets, and that excessive volatility in currency moves has an adverse economic and financial impact," Kato stated during a news conference.

The finance ministers' commitment to combating currency instability reflects broader economic priorities as global markets remain sensitive to sudden fluctuations.

(With inputs from agencies.)