Treasury’s Yellen and Japan’s Suzuki to Discuss Yen Weakness and New Russia Sanctions | Investment News

By Andrea Shalal and Tetsushi Kajimoto

TOKYO (Reuters) – U.S. Treasury Secretary Janet Yellen will discuss ways to further tighten Western sanctions against Russia over its war in Ukraine when she meets Japanese Finance Minister Shunichi Suzuki on Tuesday, the department said. of the Treasury.

Yellen’s meeting will also focus on working with Japan and other trusted partners to build stronger and more resilient supply chains to help lower prices for consumers in the United States, where inflation hits 40-year highs, he said.

A comprehensive program will also include currencies, a Japanese official said, as the yen hit a new 24-year low above 137 yen to the dollar on Monday amid concerns over the rising cost of life.

“Currencies will be discussed as one of the various issues,” the official said.

Authorities will be watching the currencies closely with a sense of urgency, the official said. What matters most in judging any response to currencies is not their levels but the speed of their movements, whether up or down.

The US Treasury Secretary paid tribute to former Prime Minister Shinzo Abe, Japan’s longest-serving modern leader, at a private vigil on Monday night, praising his work to increase Japan’s prosperity and advance the status of women. .

She canceled a public speech at the Port of Yokohama out of respect for Abe’s death, but will still meet privately with Japanese business leaders to discuss how improving supply chain resilience and a greater use of “friends shoration” can help ease inflationary pressures and solve the problem. bottlenecks.

Yellen will also continue discussions with Japan on setting a price cap on Russian oil to limit Moscow’s profits and help lower energy prices.

The two sides will likely affirm compliance with a price cap, but refrain from reaching a concrete agreement on a program, a Japanese official said.

On Wednesday, Yellen will travel to Indonesia to meet with Suzuki and other Group of 20 finance officials for their July 15-16 meetings.

(Reporting by Andrea Shalal and Tetsushi Kajimoto; Editing by Chizu Nomiyama)

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