U.S., Japan Agree to Tackle Currency, Economic Impact of Ukraine War

U.S. Treasury Secretary Janet Yellen and Japanese Finance Minister Shunichi Suzuki agreed on Tuesday to work together to tackle rising prices of food and energy, as well as volatility in currency markets, exacerbated by Russia's war in Ukraine, Reuters reported. They said that the war had raised exchange rate volatility, which could pose adverse implications for economic and financial stability, and pledged to cooperate "as appropriate" on currency issues. "We will continue to consult closely on exchange markets and cooperate as appropriate on currency issues, in line with our G7 and G20 commitments," the two sides said in a joint statement after the meeting, referring to the Group of Seven and Group of 20 economies. Later on Tuesday, Yellen acknowledged the yen's substantial depreciation in recent weeks, but said the U.S. view remained that currency intervention was warranted only in "rare and exceptional circumstances." The Japanese currency, which hit a fresh 24-year low beyond 137 yen to the dollar on Monday, has given up about 16% against the greenback this year. The two leaders also said that they were united in their "strong condemnation of Russia's unprovoked, unjustifiable, and illegal war against Ukraine", adding they continued to increase Russia's cost of its war by imposing economic and financial sanctions. Read more.