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US Treasury flags currency practices but notes Japan’s yen intervention
A US Treasury 59-page report warns it will monitor and combat non-market currency moves by multiple trading partners, including Japan, even as the US helped intervene to support the yen when it was falling.
South China Morning Post examines a 59-page US Treasury report titled “Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States,” arguing it highlights how Washington is approaching currency policy amid ongoing foreign exchange market activity.
The report says the US Treasury is committed to aggressively monitoring and combating unfair currency practices, and continues to assess whether trading partners are intervening in foreign exchange markets or using non-market policies that manipulate currencies for competitive advantage. It names multiple economies on its monitoring list, including China, Japan, Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland, with several also listed in an earlier January report.
SCMP also points to a potential inconsistency involving Japan. It notes that Japan appears recurrently on the monitoring list, even though the same month the US Treasury complained about potential currency manipulation by countries including Japan, the US helped Tokyo in a “highly unorthodox move” to massively intervene in the currency market because the yen had been weakening since Japanese Prime Minister Sanae Takaichi took office.