The U.S. Treasury Department has added Japan to its foreign exchange 'monitoring list' but stopped short of labeling it or any other major trading partner as a currency manipulator. The decision was part of the Treasury's report, which found no evidence of currency manipulation by any major trading partner in 2023. Japan's inclusion on the list is due to its bilateral trade and current account surpluses. Other countries on the monitoring list include China, Vietnam, Taiwan, Malaysia, Singapore, and Germany. The Treasury noted that Japan has been transparent in its foreign exchange operations. This development comes as the USD/JPY closes at a new 38 year high.