apan denied Wednesday U.S. President Donald Trump’s accusation that Tokyo has been seeking to devalue the yen, saying that it is not manipulating the foreign exchange market.
Trump’s remarks put Japanese authorities on guard against speculative yen-buying, prompting them to stress that the Bank of Japan’s monetary policy is not aimed at devaluing the yen but rather pulling the economy out of chronic deflation.
The criticism that Japan is encouraging the yen to devalue is “not true,” Prime Minister Shinzo Abe said at a session of the House of Representatives Budget Committee.
Abe said Japan will explain its stance to the United States if necessary, suggesting that he may raise the issue during his upcoming meeting with Trump in the United States on Feb. 10.
Trump told a meeting of pharmaceutical executives in Washington on Tuesday that Japan and China are playing “the money market.” “They play the devaluation market and we sit there like a bunch of dummies,” he added.