Japan Denies Manipulating Yen Amid U.S. Accusations

Japan's Finance Minister Katsunobu Kato rebuffed U.S. President Trump's claims that Japan manipulates its currency market. Scheduled for talks with U.S. Treasury Secretary Scott Bessent, Kato reiterated Japan's stance against such practices. Discussions could impact broader trade negotiations, especially regarding exchange rates and tariffs.

Japan's Finance Minister Katsunobu Kato has firmly denied allegations from U.S. President Donald Trump that Tokyo manipulates its currency market to weaken the yen and boost exports. The minister addressed these accusations in parliament on Friday, ahead of his scheduled visit to Washington next week.

Kato's trip will potentially include a meeting with U.S. Treasury Secretary Scott Bessent during the G20 finance leaders' gathering. The bilateral talks could serve as a crucial venue for discussing exchange rates as part of broader tariff negotiations between the two nations, despite Trump's assertions about Japan's currency practices.

Meanwhile, Japan's top trade negotiator, Ryosei Akazawa, indicated that the topic of exchange rates did not feature in the latest trade discussions with the U.S. However, he suggested that if desired by Washington, Kato might engage in exchange rate dialogues with Bessent. Global policymakers are eyeing these developments closely, as they gather for the IMF meetings in Washington.

(With inputs from agencies.)