Japan Denies Trump's Yen Manipulation Claims

The Japanese government has categorically denied allegations that it has been guiding the depreciation of the yen, following comments made by US President Donald Trump. In a press conference on March 4th, Japanese Chief Cabinet Secretary Hirokazu Matsuno refuted Trump's claims, stating that Japan has not pursued a policy to deliberately weaken its currency.

Trump, while explaining his decision to impose tariffs on Japanese vehicles at the White House on March 3rd, accused Japan of manipulating its currency to gain an unfair advantage over the US. He suggested that he would use taxes to "quickly and effectively bring about fairness." However, the Japanese government has maintained that it has not engaged in any such practices.

In response to Trump's allegations, Japanese Finance Minister Taro Aso reiterated that Japan has not pursued a yen depreciation policy. He noted that the Japanese government and the central bank have been intervening in the foreign exchange market since 2022 to correct the trend of yen depreciation and dollar appreciation. This intervention has been aimed at stabilizing the currency and preventing excessive volatility, rather than deliberately weakening the yen.

The Japanese government has expressed its willingness to continue close consultations with US Treasury Secretary Janet Yellen to address any concerns and maintain a stable and healthy bilateral economic relationship. Despite the denial, the Japanese yen has continued to depreciate in recent months, reflecting broader global economic trends and market sentiment.