Scott Bessent reaffirms US, Japan coordination on currency moves

US Treasury Secretary Scott Bessent met with Japanese Finance Minister Satsuki Katayama in Tokyo to reaffirm "constant and robust" communication regarding foreign exchange. The meeting focused on coordination as the yen has depreciated sharply, with Japan suspected of conducting approximately $60 billion in yen-buying interventions in late April 2026. Joint statements since September 2025 allow Japan to intervene against "excessive" market swings without being labeled a currency manipulator by the US.

The article highlights the impact of the yen carry trade, where investors borrow cheap yen to invest in higher-yielding assets, including Bitcoin. Aggressive interventions to strengthen the yen can trigger rapid unwinds of these trades, leading to cross-asset volatility. While Bitcoin remained stable above $95,000 following the meeting, analysts warn that reduced forex volatility might shift capital from risk assets back to traditional bonds, while further yen depreciation could reintroduce market turbulence.

(Source：Crypto Briefing)