U.S. Treasury Secretary Janet Yellen, who beforehand served as chair of the Federal Reserve, is seeing eye to eye with Japan Finance Minister Shunichi Suzuki on the antagonistic implications of trade charge volatility.

“The financial fallout from Russia’s invasion has raised trade charge volatility, which may have antagonistic implications for financial and monetary stability,” Yellen and her Japanese counterpart mentioned in a joint assertion launched Tuesday after assembly in Tokyo. “We are going to proceed to seek the advice of intently on trade markets and cooperate as applicable on forex points, in keeping with our G-7 and G20 commitments,” they added.

Their remarks come shortly after the yen additional weakened towards the hovering U.S. greenback to its lowest since 1998, which was the final time the U.S. and Japan labored collectively to assist the Japanese forex. The yen is at the moment rising 0.5% to 136.73 towards the dollar as of shortly earlier than 1:30 p.m. ET.

The surging U.S. greenback, after all, has inflationary implications throughout the globe (besides within the U.S.), specifically by means of dearer vitality imports as is the case with Japan, which has been conducting straightforward financial coverage since even earlier than the U.S. Earlier, the euro hit parity with greenback for the primary time in 20 years.

In reference to a possible worth cap on Russian oil exports, Yellen and Suzuki additionally “welcome G-7 efforts to proceed exploring methods to curb rising vitality costs, together with the feasibility of worth caps the place applicable, whereas contemplating mitigation mechanisms to make sure that most weak and impacted international locations keep entry to vitality market,” as per the assertion.

Associated ETFs: iShares MSCI Japan (NYSEARCA:EWJ), WisdomTree Japan Hedged Fairness (NYSEARCA:DXJ) and Invesco CurrencyShares Japanese Yen Belief (NYSEARCA:FXY).

Earlier this week, (July 11) Japan’s ruling occasion saved majority in higher home election.