Tokyo: Former Haruhiko Coroda governor, Japan, said that Japan should be suitable for “any misunderstanding” by US President Donald Trump that its central bank intentionally weakens the monetary policy.
Trump said on Monday that he told Japan and China that it could not continue to reduce the value of their currencies, because doing this would be unfair to the United States. When asked about Trump’s comment on Friday night, Coroda told one of the Japanese TV interviews that there are limits to what Japan could do to support the yen if the dollar rises on the possibilities of high inflation in the United States of the planned Trump tariff.
“In fact, the Japanese government is making great efforts to prevent the yen from weakness,” Coroda said, such as interfering in the exchange rate market to support its currency. After a long period of advanced policy, BOJ began to raise interest rates, while the government made interventions in the rare currency market in 2022 and last year to reinforce the yen, which in July reached the lowest level in 38 years near 162 to the dollar. The dollar ended this week about 148 yen.
“BOJ does not deliberately direct the yen with monetary policy. If there is any misunderstanding at this point, it must be addressed.”
