Japan fin min Kato asked about US Treasury report on Japan, says monetary policy up to BOJ

Japan finance minister Kato

• says monetary policy up to BOJ, when asked about US Treasury report on Japan

Earlier:

• US Treasury says no other country manipulates their own currency

In the report the U.S. Treasury Department urged the Bank of Japan to stay the course on monetary tightening, arguing that doing so would help correct the yen’s prolonged weakness and contribute to a more balanced trade relationship between the two countries.

In its exchange-rate report to Congress, the Treasury said the BOJ’s policy decisions should be driven by Japan’s domestic economic conditions, including growth and inflation trends. A continued tightening path, it noted, would support a healthier exchange rate and facilitate needed structural adjustments in trade flows.
The report also cautioned against using state-run investment funds—such as public pension schemes—as tools to influence the yen’s value. Instead, the Treasury emphasized that these vehicles should focus on risk-adjusted returns and portfolio diversification, not currency competitiveness.

This article was written by Eamonn Sheridan at www.forexlive.com.