Japanese Finance Minister Satsuki Katayama confirmed on Tuesday that she held a phone call with US Treasury Secretary Bessent, with both sides focusing on global financial market conditions and the potential impact of geopolitical developments. Although Katayama did not directly address whether specific details regarding currency market intervention were discussed, she repeatedly emphasized that a strong consensus exists between Japan and the US on taking decisive action when necessary, noting that this stance remains unchanged. Amidst a constantly evolving global economic environment, the two sides engaged in constructive communication and achieved close alignment in their views. This call is viewed as a continuation of discussions from the previous G7 summit, aiming to coordinate responses to financial market volatility.

The yen has continued to show weakness recently, with the USD/JPY exchange rate touching near 161.9 Monday night, within striking distance of its lowest level since 1986. During early Asian trading on Tuesday, the rate rebounded slightly to around 161.58 but overall remains trading near multi-decade lows. Given that Tokyo previously deployed record funds to intervene in the currency market, market speculation regarding subsequent moves by policy authorities continues to intensify. Japanese financial authorities have not clearly signaled imminent intervention; this ambiguity may itself be part of their communication strategy. Katayama has previously stated that Tokyo stands ready to take appropriate action against excessive exchange rate volatility at any time.