US Treasury Urges Bank of Japan in Semiannual Report to Continue Tightening Policy to Strengthen Yen, Citing Dollar-Yen Exchange

The US Treasury has urged the Bank of Japan (BOJ) to continue tightening its monetary policy to support the strengthening of the Japanese yen, according to its latest semiannual currency report. This marks a deeper level of policy recommendation from the US Treasury toward Japan than in previous reports. The Treasury emphasized that ongoing BOJ tightening would help correct the yen's depreciation against the dollar. Japan's former top foreign exchange diplomat, Koichi Furusawa, noted that the US aims to prevent further dollar appreciation, while Japan seeks to avoid inflationary pressures caused by a weak yen. The US Treasury's call reflects concerns over currency stability and inflation dynamics between the two economies.