Updated
Updated · The New York Times · Sep 1
Katayama, Bessent Coordinate Yen Intervention After Currency Hits 164 per Dollar
Updated
Updated · The New York Times · Sep 1

Katayama, Bessent Coordinate Yen Intervention After Currency Hits 164 per Dollar

3 articles · Updated · The New York Times · Sep 1

Summary

  • Late July brought an unusual joint currency-market intervention by Japan’s Satsuki Katayama and U.S. Treasury Secretary Scott Bessent, temporarily lifting the yen after it slid to 164 per dollar.
  • Bessent had pressed Japan in a May Tokyo dinner, arguing the yen’s four-decade weakness reflected heavy government spending and Bank of Japan policies that kept interest rates too low.
  • He viewed the slump as a dual problem: it worsened imported inflation in Japan and fed President Donald Trump’s long-running complaint that a weak yen disadvantages U.S. exporters.
  • The episode puts Katayama — Japan’s first female finance minister — at the center of a broader fight over whether Tokyo should give the BOJ more autonomy and tolerate a stronger currency.

Insights

Was the historic U.S.-Japan currency intervention truly about saving the yen, or secretly protecting U.S. borrowing costs?
Will the rare coordinated market intervention actually reverse the yen's historic collapse, or just delay the inevitable?
Can Japan's central bank finally break decades of capital flight before imported inflation crushes its domestic economy?