TOKYO (Reuters) – Japan’s top currency diplomat Masatsugu Asakawa said there will be no change to Japan’s currency policy after U.S. President-elect Donald Trump forms his administration, the Nikkei newspaper reported on Thursday.
Japan guides exchange-rate policy based on an agreement among the Group of Seven advanced economies that highly volatile currency fluctuations are undesirable for the economy, a stance that won’t change after Trump becomes president, Nikkei quoted Asakawa as saying. It did say when the interview was conducted.
Asakawa said Trump’s stance on exchange rates was still unclear as his remarks suggested he was looking at both the costs and benefits of a strong dollar to the U.S. economy, Nikkei said.
The dollar has strengthened against the yen since Trump was elected president and U.S. Treasury yields spiked on expectations that the new administration would boost debt-funded infrastructure spending. Trump has repeatedly criticized Japan and China for currency policies that give their exports an unfair trade advantage, reinforcing market expectations that Japan won’t get consent from the United States to intervene in the currency market to stem any future, unwelcome yen rises.
(Reporting by Leika Kihara; Editing by Richard Pullin and Eric Meijer)