TOKYO: US 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.

They said 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 US 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 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.

Russia has described the invasion of Ukraine as “a special military operation”.

US to press bid for Russia oil price cap at G20: Treasury officials

The Ukraine crisis has raised the risk of a global recession by stoking a surge in cost pressures and exacerbating supply chain disruptions in a blow to demand.

Yellen and Suzuki also urged China and other non-Paris Club creditors to cooperate “constructively” in helping low-income countries facing debt distress, while also touching on issues such as climate change and global tax reforms.

China’s lack of cooperation on debt restructuring for low-income countries has been “quite frustrating” and Washington has discussed the issue with Beijing several times, Yellen told reporters after the meeting.

The joint statement also referred to a price cap on Russian oil proposed by the United States to keep Moscow from using higher oil prices to fund its war in Ukraine, but stopped short of laying out any agreement on a scheme.

Yellen told reporters the United States had not mentioned a specific number for the price cap, but Russian budgets had in the past factored in $40 a barrel and their marginal cost was “well below that”.

The global price of oil could surge by 40% to about $140 a barrel if a proposed price cap on Russian oil is not adopted, along with sanction exemptions that would allow shipments below that price, a senior US Treasury official said earlier.