U.S. President Donald Trump stated that he has informed the leaders of Japan and China that they cannot continue to devalue their currencies, as it would be unfair to the United States. His remarks came amid heightened market concerns as new tariffs on imports from Mexico and Canada took effect, alongside increased duties on Chinese goods, escalating global trade tensions. Following his comments, the yen briefly strengthened against the dollar. Trump suggested that tariffs could counteract the disadvantage faced by U.S. manufacturers due to currency devaluation elsewhere. Japanese officials, including Finance Minister Katsunobu Kato, affirmed that Japan is not pursuing policies to weaken the yen, and Prime Minister Shigeru Ishiba echoed this stance. Meanwhile, China has been stabilizing its currency, with some analysts noting that both China and Japan are aligned with the U.S. in avoiding excessive currency weakness. Trump’s criticism of currency practices adds complexity to the Bank of Japan’s considerations on interest rate adjustments. Some analysts believe Trump’s stance may prompt further rate hikes by the Bank of Japan. — news from Reuters
