Japan unlikely to face pressure from US to strengthen yen — Reuters

Japan’s former currency diplomat Masatsugu Asakawa told Reuters the country is unlikely to face pressure from the United States to strengthen the yen. 

President Donald Trump’s focus on the US trade deficit and his comments about the deliberate weakening of the yen have fueled speculation that Japan could be pressured to adjust its currency's value. That would give American manufacturers a competitive advantage, the news agency says.

At the same time, Asakawa stated that a controlled devaluation of the dollar is also unlikely. The weakening of the greenback will drive up inflation in the United States, he noted.

Asakawa claimed US Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato do not raise currency issues in trade talks. The officials also did not discuss exchange rate targets or measures to control yen moves during their first face-to-face meeting in April, Kato said at the time.

Meanwhile, as part of the negotiation, Japan could propose increasing investment in the US, revising national car safety standards, and contributing to the production of liquefied natural gas in Alaska, Asakawa stated.