The U.S. Treasury Secretary to Visit Japan to Coordinate on Rare Earths and Other Issues
The Japanese and U.S. governments are coordinating the upcoming visit of U.S. Treasury Secretary Bessent to Japan next week, adjusting toward meetings with Prime Minister Sanae Hata. It is expected that both sides will discuss developments in foreign exchange markets marked by persistent yen depreciation and dollar appreciation, as well as strategies to counter speculative selling of the yen.
According to multiple sources, Treasury Secretary Bessent is currently arranging a visit to Japan from May 11 to May 13.
On April 30, the yen fell to the latter half of the 160 yen-to-the-dollar range in Tokyo's foreign exchange market—its weakest level in about 1 year and 9 months—before rebounding swiftly overseas to around 155 yen per dollar. Reports indicate that the Japanese government and the Bank of Japan intervened by buying yen and selling dollars in an effort to halt further depreciation of the yen. In June 2025, when the U.S. Department of the Treasury released its currency report, Bessent stated: "The Trump administration has warned trading partners that the U.S. will no longer tolerate macroeconomic policies that exacerbate trade imbalances with the United States." Among such policies, "excessively low domestic currency exchange rates" were explicitly included. However, this recent yen depreciation was not due to deliberate devaluation by Japan but rather driven by "safe-haven demand for dollars" amid escalating tensions in Iran and rising crude oil prices, which have expanded Japan’s trade deficit. These factors have triggered market sentiment favoring yen sell-offs, suggesting the yen may continue to weaken in the near term. Persistent yen depreciation could affect U.S. trade balance and macroeconomic conditions, prompting the U.S. to consider joint intervention in foreign exchange markets with Japan to prevent further decline in the yen.
It is expected that he will discuss critical minerals such as rare earths with Japanese cabinet officials, along with broader topics including economic security and the situation in Iran.
On the 6th, the Group of Seven (G7) held a ministerial meeting of trade ministers in Paris, France—the current rotating chair of the G7—to discuss strengthening supply chains for critical minerals. At the meeting, Japanese Minister of Economy, Trade and Industry Akihisa Akazawa stated that a joint declaration had been compiled, reflecting concerns among member countries regarding export restrictions on materials such as rare earths.
Minister Akazawa said: "In the face of rapidly evolving international circumstances, it is extremely significant to clearly identify areas where the G7 can coordinate and cooperate, demonstrating unity within the group."
Source: rfi
Original article: toutiao.com/article/1864599294451724/
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