Business · Malaysia Bureau
US Treasury Chief Calls for Bold BOJ Action Against Weak Yen
The United States has renewed pressure on Japan's central bank to take aggressive monetary measures to address the yen's weakness. The call comes as both nations seek to prevent currency instability from roiling global financial markets.
LSN Malaysia ·
US Treasury Secretary Jay Powell has urged Japan's Bank of Japan to implement decisive monetary steps to counter the persistent weakness of the yen against other major currencies. The appeal underscores growing American concern over currency market volatility and its potential spillover effects across regional and global economies.
The two countries demonstrated their commitment to stability by jointly intervening in yen-buying operations last month, a rare coordinated effort designed to arrest the currency's decline and prevent broader market disruptions. The intervention reflected concerns that unchecked yen weakness could trigger a destabilising sell-off in Japanese bonds and spread contagion to international financial markets.
Currency movements have significant implications for trade competitiveness, inflation, and financial stability across Asia-Pacific. Japan's weak yen has made its exports more competitive internationally but raised import costs domestically, creating challenges for policymakers seeking to balance growth and price stability.
The US intervention marked a notable diplomatic gesture, signalling Washington's recognition that Japan's monetary challenges require coordinated international support. Officials from both nations are expected to continue consultations on currency markets and broader economic cooperation going forward.