Japan’s Finance Minister Shunichi Kato on Friday dismissed allegations that the country is deliberately weakening the Japanese Yen, emphasizing that Tokyo does not manipulate the foreign exchange (FX) market.
Speaking a day after bilateral talks commenced in Washington, Kato affirmed Japan’s commitment to maintaining stable currency markets. He stressed the importance of continued communication with the United States on FX matters, noting that both nations have long agreed that excessive volatility and disorderly currency movements are undesirable.
Key Remarks:
Japan’s foreign reserve management aims to avoid triggering market volatility.
It remains difficult to predict the direction of US long-term interest rates, which are influenced by various external factors.
Market Response: Following Kato’s comments, the USD/JPY pair slipped slightly, down 0.04% on the day, trading at 142.40 at the time of writing.
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