Japan's finance ministry denies manipulating currency market to weaken yen

Japan’s Finance Minister, Katsunobu Kato, denied Donald Trump’s accusations that Japan was deliberately devaluing its currency to give its exporters an edge.

Kato denies any currency market manipulation to weaken the yen, pointing out that the Bank of Japan (BOJ) has actually intervened to buy yen instead.

The yen's recent rally was partly driven by market speculation that the US might pressure Japan to join coordinated efforts to weaken the dollar and reduce America's massive trade deficit.

Some analysts believe any discussions about the yen could influence the Bank of Japan's monetary policy. The BOJ's ultra-low interest rates and gradual pace of rate hikes may be criticized by the US for keeping the yen artificially weak.

BOJ Governor Ueda stated that the central bank would implement corresponding monetary policy measures to steady inflation around its 2% target.