Former Bank of Japan (BOJ) Governor Haruhiko Kuroda stated that Japan must address any misunderstanding by U.S. President Donald Trump, who accused the country of intentionally weakening the yen.
📌 Trump’s Currency Concerns
Trump warned Japan and China that weakening their currencies was unfair to the U.S., but Kuroda clarified that Japan has been working to support the yen, including through currency market interventions.
📉 BOJ’s Monetary Policy Shift
- The BOJ has raised interest rates after years of ultra-loose policy.
- The yen hit a 38-year low near 162 per dollar in July but ended this week at 148 yen per dollar.
- The BOJ is gradually increasing rates to prevent inflation from rising too quickly.
📈 Outlook for Japan’s Economy
Kuroda supports steady rate hikes but warns against moving too fast or too slow. The BOJ exited negative rates in January, and further rate increases are expected in the coming years.
As Japan moves away from radical monetary easing, Tokyo aims to reassure Washington that it is not manipulating its currency to gain an export advantage.