Ruptly
"US Treasury Secretary Scott Bessent arrived in Tokyo on Tuesday for a high-stakes diplomatic mission, meeting with Japan's top leadership to align economic strategies ahead of President Donald Trump's forthcoming visit to China. Footage shows Bessent arriving at the Prime Ministers office, greeting PM Sanae Takaichi before sitting down to meetings. Discussions with Takaichi, Finance Minister Satsuki Katayama, and Bank of Japan Governor Kazuo Ueda centred on the dual challenges posed by a weakening yen and the need to secure critical supply chains. “We discussed the very strong US-Japan bilateral relationship. We discussed the US-Japan investment program. We discussed critical minerals. We discussed President Trump's visit to Beijing,” Bessent told reporters after the meeting. The rapid depreciation of the yen was a primary concern. Both Secretary Bessent and Minister Katayama acknowledged that ‘excessive volatility’ in the foreign exchange market is undesirable. While the US has historically been cautious about currency interventions, Bessent expressed tacit support for Japan’s recent efforts to stabilise the yen, asserting that its current valuation does not accurately reflect Japan’s economic fundamentals. A significant portion of the talks addressed economic security, particularly the global reliance on China for rare-earth metals and other critical minerals. Both nations are committed to enhancing bilateral cooperation to diversify supply chains, seen as essential before Trump's summit with President Xi Jinping on Thursday. Bessent emphasised, “The partnership between the US and Japan is strong. Prime Minister Takaichi had a very successful visit with President Trump, and we are building on that visit in areas like critical minerals, investment partnerships, and economic security.” Regarding financial markets, Bessent noted, “There’s been a global backup in bond yields as markets are pricing in a short-term blip in inflation that I believe is transient.” Bessent is expected to travel to South Korea on Wednesday for talks with Chinese Vice Premier He Lifeng before joining the presidential delegation in China. "
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