Japan Rejects Currency Devaluation Accusations

🗣️ Kato: “We Don’t Weaken the Yen to Gain Trade Advantage”

Japan’s Finance Minister Katsunobu Kato strongly denied accusations from U.S. President Donald Trump. Trump had claimed that Japan intentionally weakens its currency to support exporters. Speaking in parliament on Friday, Kato said Japan does not manipulate the currency market. In fact, he pointed to recent yen-buying intervention as proof of Japan’s non-manipulative stance.

🤝 Key Meetings in Washington

Kato is expected to visit Washington next week. During this visit, he may meet U.S. Treasury Secretary Scott Bessent on the sidelines of the G20 finance ministers’ summit and IMF Spring Meetings. If held, the meeting will likely include currency-related discussions. It will also support broader tariff negotiations that resumed earlier this week.

Although the meeting is not yet confirmed, analysts expect currency topics to dominate the agenda. Kato declined to comment on possible outcomes but acknowledged that the U.S. is keen to discuss exchange-rate issues.

📉 Market Sensitivity to Yen Strength

Markets have closely followed the yen’s movements in recent weeks. The yen has strengthened, sparking speculation that Washington may urge Japan to support efforts to weaken the dollar. This could help reduce the U.S. trade deficit.

Trump had already warned Japan and China about devaluing their currencies. He called such strategies unfair and damaging to U.S. trade competitiveness.

💬 No Currency Talk in Recent Trade Meeting

Japan’s Chief Trade Negotiator Ryosei Akazawa confirmed that recent U.S.-Japan trade talks did not include currency topics. He said both countries had agreed to reserve that discussion for their finance ministers. This reinforces the importance of the possible Kato–Bessent meeting next week.

🏦 BOJ Governor Reaffirms Inflation Target

Bank of Japan Governor Kazuo Ueda also spoke in parliament. He refused to comment on yen levels. However, he confirmed that the BOJ will adjust monetary policy based on economic data. Ueda emphasized the BOJ’s long-term goal of sustainable 2% inflation.

📅 Next BOJ Meeting: April 30 – May 1

The BOJ is expected to keep interest rates at 0.5% during its next meeting. However, analysts believe the central bank may revise its economic growth forecasts downward. Global uncertainty, rising inflation, and U.S. trade policy all weigh on the outlook.

🌍 G20 and IMF Talks Could Shift Global Currency Strategy

The IMF and G20 meetings, set to run through April 26, may influence global exchange rate strategies. Any agreement or disagreement between Japan and the U.S. could impact central bank policies and investor sentiment worldwide.

With global attention on Washington, Japan’s position on the yen, interest rates, and trade could shape key decisions in the weeks ahead.