U.S. President Donald Trump's desire to influence the yen's exchange rate in the ongoing trade negotiations with Japan is likely to create challenges for both nations, analysts warned.
Trump previously accused Japan of intentionally devaluing the yen, which he argues gives Japan an unfair trade advantage. However, experts caution that shifting the value of the yen is a delicate issue that could have unintended economic consequences. Raising interest rates rapidly to boost the yen could harm Japan’s fragile economic recovery and undermine central bank independence. Conversely, Japan could sell U.S. dollars to strengthen its currency, but this could risk damaging its vast investments in U.S. debt, at a time when financial markets are already volatile.
Citigroup analysts noted that while Japan's currency remains undervalued, targeting it through a coordinated devaluation effort, known as the "Mar-a-Lago Accord," may hurt Japan's interests, especially with the current fragile financial environment. Trump has already imposed a 25% tariff on Japanese cars, and the Nikkei share index has dropped 6% since its announcement, highlighting the potential economic impact.
The yen recently gained some ground against the dollar, which has caused speculative bets on further yen strength. However, experts, such as Yunosuke Ikeda of Nomura, warn that trying to influence the dollar's value in the current environment could destabilize U.S. Treasury markets, where international investors hold a massive amount of U.S. government debt.
While Japan’s central bank desires a stronger yen, its efforts are focused on improving industrial competitiveness, and there are no immediate plans to manipulate the currency. With elections looming in Japan, the government's hands are tied on aggressive monetary policy adjustments, making Trump's expectations difficult to fulfill in the short term.
U.S.-based private equity firm Redbird Capital Partners has reached an agreement to acquire the UK’s Telegraph Media Group for £500 million, becoming the sole owner of the 170-year-old newspaper and ending a prolonged period of financial and ownership instability.
The United States will impose sanctions on Sudan following a formal determination that the Sudanese government used chemical weapons during its ongoing war with the paramilitary Rapid Support Forces (RSF), the State Department announced Thursday.
Iran and the United States resumed nuclear negotiations in Rome on Friday, with uranium enrichment remaining the core sticking point in a bid to revive diplomacy and ease economic sanctions on Tehran.
Japanese Prime Minister Shigeru Ishiba has called on US President Donald Trump to end tariffs on Japanese goods, as both sides prepare for key trade talks amid hopes of reaching a mutually beneficial agreement.
The United States is set to bolster Estonia’s defense with a proposed $296 million sale of Javelin missiles and related gear, aiming to strengthen the Baltic nation’s security and its role within NATO.
Russia is preparing to present Ukraine with a draft peace proposal once a recent prisoner swap concludes, Foreign Minister Sergei Lavrov announced Friday, signaling a potential step forward in peace efforts.
Boeing has struck a deal with the U.S. Justice Department to avoid criminal charges over the 737 Max tragedies, agreeing to pay over $1.1 billion in penalties, victim support, and safety reforms.
North Korean leader Kim Jong Un has ordered the arrest of those responsible for the failed launch of the country’s second naval destroyer, calling the incident an “unpardonable criminal act” and demanding accountability amid skepticism over the extent of damage to the warship.
German police say at least 17 people were injured in a knife attack at Hamburg’s main train station on Friday.
Iran and the U.S. ended a fresh round of indirect talks in Rome, as negotiators hope to resolve a decades-long dispute over Iran’s nuclear ambitions.
Tensions flare in the India-France Rafale deal as France refuses to share the fighter jet’s source code, limiting India’s ability to integrate indigenous weapons and reducing its combat autonomy.
France has rejected India’s request to share source codes needed to integrate indigenous weapons into Rafale fighter jets. Despite repeated appeals, French manufacturer Dassault Aviation has refused to compromise on the issue
Anton Kobyakov, adviser to Russian President Vladimir Putin, claimed at the St. Petersburg International Legal Forum that the USSR’s dissolution was legally invalid and that the Soviet Union still exists under constitutional law, framing the Ukraine war as an “internal process.”
In a region long defined by conflict and complex history, AnewZ set out to hear the voices that matter most- those of the people.
Two staff members from the Israeli embassy in Washington, D.C.- Yaron Lischinsky and Sarah Lynn Milgrim were shot and killed on Wednesday night by a lone gunman as they left an event at the Capital Jewish Museum, close to the White House.
Russia is preparing to present Ukraine with a draft peace proposal once a recent prisoner swap concludes, Foreign Minister Sergei Lavrov announced Friday, signaling a potential step forward in peace efforts.
Boeing has struck a deal with the U.S. Justice Department to avoid criminal charges over the 737 Max tragedies, agreeing to pay over $1.1 billion in penalties, victim support, and safety reforms.
North Korean leader Kim Jong Un has ordered the arrest of those responsible for the failed launch of the country’s second naval destroyer, calling the incident an “unpardonable criminal act” and demanding accountability amid skepticism over the extent of damage to the warship.
German police say at least 17 people were injured in a knife attack at Hamburg’s main train station on Friday.
Iran and the U.S. ended a fresh round of indirect talks in Rome, as negotiators hope to resolve a decades-long dispute over Iran’s nuclear ambitions.
Russia is preparing to present Ukraine with a draft peace proposal once a recent prisoner swap concludes, Foreign Minister Sergei Lavrov announced Friday, signaling a potential step forward in peace efforts.
Boeing has struck a deal with the U.S. Justice Department to avoid criminal charges over the 737 Max tragedies, agreeing to pay over $1.1 billion in penalties, victim support, and safety reforms.
North Korean leader Kim Jong Un has ordered the arrest of those responsible for the failed launch of the country’s second naval destroyer, calling the incident an “unpardonable criminal act” and demanding accountability amid skepticism over the extent of damage to the warship.
German police say at least 17 people were injured in a knife attack at Hamburg’s main train station on Friday.
Iran and the U.S. ended a fresh round of indirect talks in Rome, as negotiators hope to resolve a decades-long dispute over Iran’s nuclear ambitions.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment