Japan sees little scope for grand deal on yen in talks with US

Makiko Yamazaki - Reuters - 22/04
When Japanese Finance Minister Katsunobu Kato meets his U.S. counterpart Scott Bessent in Washington this week, the yen is shaping up to be a major topic of discussion, though sources say Tokyo will push back against any request to boost its currency.
  • Japan, U.S. finance heads to meet this week in Washington
  • Kato, Bessent likely to discuss currency rates
  • Japan's focus would be to sound out U.S. wish-list, sources say
  • Japan sees little scope for yen intervention, BOJ rate hike
TOKYO, April 22 (Reuters) - When Japanese Finance Minister Katsunobu Kato meets his U.S. counterpart Scott Bessent in Washington this week, the yen is shaping up to be a major topic of discussion, though sources say Tokyo will push back against any request to boost its currency.
While some analysts bet Washington will pressure Tokyo to help prop up the yen, Japan sees little scope for direct action such as currency intervention or an immediate interest rate hike by the central bank, according to three sources with knowledge of the negotiations.

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Rather, Japanese policymakers hope to better understand what the U.S. has in mind on exchange-rate matters, and how they fit into a package of steps the two countries will negotiate in clinching a trade deal, the sources said.
That means the meeting between Kato and Bessent, which will be the first face-to-face talks between the two, will likely underwhelm expectations of some market players for a major, coordinated arrangement to boost the yen.
"Much will be about sounding out Washington's intentions," one of the sources said on Japan's strategy on the expected meeting between Kato and Bessent, which will take place on the sidelines of the spring meeting of the International Monetary Fund in Washington.
The two countries are sti...
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