Japan, US finance leaders to base currency talks on past FX agreement at G7 meeting amid volatility concerns

AI Summary

Japanese Finance Minister Katsunobu Kato anticipates discussions with US Treasury Secretary Janet Yellen on exchange rates will reaffirm their shared stance against excessive currency volatility. Kato emphasized market-determined exchange rates and the negative economic impact of volatility. Both officials are expected to meet during the G7 finance leaders' gathering in Canada. Japan is also monitoring the impact of Moody's US credit rating downgrade. While trade tariffs are being addressed separately, currency rates remain a key discussion point, particularly given President Trump's focus on the US trade deficit and past criticism of Japan's currency policies.